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DEPARTMENT
OF LABOR
30th Annual Report
2004 Fiscal Year
Division of
Workers Compensation
KANSAS DEPARTMENT OF LABOR
David Sprick
800 SW Jackson Street, Suite 600
Topeka, KS 66612-1227
(785) 296-4120 ext. 208
david.sprick@dol.ks.gov
Kansas Division of Workers Compensation Annual Statistical Report 2004
This annual report contains information on the Workers Compensation Division’s operations by
section for the past fiscal year, tables of data on the incidence of workplace injuries and illnesses,
insurance industry premiums and losses for Kansas, fraud and abuse activity, and revenue and
operating expenditures for the Kansas Workers Compensation Fund. The annual report also
contains the results of a major statistical study on Kansas Workers Compensation claims that
closed out in 2003.
In Fiscal Year 2004, the Division processed 15,566 applications for hearings, and 5,918
employer elections. The Business section issued 234 self-insurance permits to employers,
including 37 to new applicants. The Compliance section established more than 3,500 employer
contacts. This year, the Fraud and Abuse Unit collected $80,595.05 in restitution and civil
penalties. The Fraud and Abuse Unit has stepped up prosecution of workers compensation fraud
violators. The Industrial Safety and Health section conducted over 1,400 consultations and 620
audits to assist employers in creating safer work environments for Kansas workers, and the
Boiler Safety unit conducted nearly 12,000 (3,320 state, 8,626 insurance) inspections. In
addition, the Ombudsman section provided information upon request to 27,502 parties during the
fiscal year. The Research section responded to over 35,000 requests for workers compensation
histories.
The Technology and Statistics section, along with the KDOL Information Services Division,
implemented Electronic Data Interchange (EDI), a system to allow electronic reporting of initial
injuries and follow-up reports by insurers. In the months following its launch, EDI has been well
received by Kansas employers and insurers, even exceeding our own expectations. By mid-
February of last year, we exceeded our goal for EDI participation for the entire year. In FY2004,
about one-third of all accident reports were filed electronically.
The Division hosted three seminars on workers compensation and industrial safety topics during
Fiscal Year 2004 which were a great success both in educational opportunities and professional
interaction.
I thank all of the employees of the Division of Workers Compensation for the hard work and
dedication to public service that they exhibit on a daily basis. The Division remains committed to
enhancing the efficient delivery of services to the people and businesses of Kansas.
Sincerely,
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Kansas Division of Workers Compensation Annual Statistical Report 2004
INTRODUCTION
The Kansas Legislature enacted the state’s first law governing workers compensation, as a no-
fault system, more than nine decades ago in 1911. Although many significant changes to its
provisions have been made since then, the basic premise and purpose of that law have remained
much the same. The premise is that those injured in industrial accidents should be compensated
regardless of who is at fault. The purpose is to provide protection to the injured employee
through employer safety efforts, medical treatment and partial compensation for lost income.1
Until 1939, the responsibility for administering the workers compensation law resided with a
"workmen's compensation commissioner" whose authority extended from a series of public
commissions to whom the position reported, including the Public Safety Commission in the
1920s and the Commission of Labor and Industry in the 1930s. In 1939, the Kansas Legislature
created, and transferred jurisdiction over workers compensation to, a stand-alone agency named
the Office of the Workmen’s Compensation Commissioner. In 1961, the legislature reorganized
the office again, into the Office of the Director of Workers Compensation. This office
subsequently became a division under the Department of Labor. Today's Division of Workers
Compensation, while having grown and undergone considerable organizational changes, is
essentially the same agency created in 1939.
The current workers compensation law covers all employers in Kansas, regardless of the number
of employees or the kind of work they do, with two exceptions: employers engaged in
agricultural pursuits and any employer who during a given calendar year has an estimated payroll
less than $20,000 for that year, unless the employer is a subcontractor. The State of Kansas pays
no workers compensation benefits to injured workers unless they are state employees. Private
employers pay all benefits owed to their injured workers, either directly from the employer's own
resources or indirectly through another party. While most covered employers obtain insurance
from private carriers or group pools, provisions in the law establish criteria for certain employers
to become self-insured. Potentially eligible employers must apply for approval from the Director
of Workers Compensation. Criteria include continuous operation for at least five years, a
minimum level of after-tax earnings and a minimum debt/equity ratio. The Kansas Insurance
Department approves the formation of group-funded self-insurance pools and determines
whether an employer qualifies for membership in a pool.
1
Madison v. Key Work Clothes, 182 Kan. 186, 192, 318 P. 2d 991 (1957).
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Kansas Division of Workers Compensation Annual Statistical Report 2004
BENEFITS INFORMATION
COMPENSATION
Kansas’ workers compensation law requires that an employer or its insurance carrier pay an
injured employee two-thirds of the employee's gross average weekly wage up to the amount of
the applicable maximum benefits listed below. To find the appropriate maximum, look for the
range of dates that contain the date of injury and then go to the right to find the maximum dollar
amount of the benefit. For example, if the date of injury was August 21, 1994, the maximum
weekly benefit one could receive would be $319. The actual amount one receives is the lesser of
two amounts: either two-thirds of one’s gross average weekly wage or the maximum in effect at
the date of the injury. This effective maximum does not change over the life of one’s claim, even
though the maximum benefit level for each new 12-month interval usually increases by a small
amount.
MEDICAL
A person injured on the job is entitled to all medical treatment that may be needed to cure or
relieve the effects of the injury. Under the law, the employer has the right to choose the treating
physician. If the worker seeks treatment from a doctor not authorized or agreed upon by the
employer, the insurance company is only liable up to $500 toward such medical bills. The
employee does have the right to apply to the Director of Workers Compensation for a change of
doctor. An injured worker is generally entitled to mileage reimbursement for trips to see a
physician for distances in excess of five miles for the round trip. The injured worker generally
also can obtain reimbursement if transportation must be hired. Weekly compensation is payable
at the above applicable rate for the duration of the disability. In no case can such payments
exceed a total of $125,000 for permanent total or $100,000 for permanent partial or temporary
disability.
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Kansas Division of Workers Compensation Annual Statistical Report 2004
BENEFITS INFORMATION
Temporary Total Disability is paid when the employee, due to an injury, is unable to engage in
any type of substantial and gainful employment. Benefits are paid for the duration of the
disability.
Permanent Total Disability is paid when the employee, due to an injury, has been rendered
completely and permanently incapable of engaging in any type of substantial and gainful
employment. The loss of both eyes, both hands, both arms, both feet or both legs, and any
combination thereof, in the absence of proof to the contrary, shall also constitute a permanent
total disability. Substantially total paralysis, or incurable imbecility or insanity, resulting from
injury independent of all other causes, shall also constitute permanent total disability.
Permanent Partial Scheduled Disability is paid when the employee sustains complete or
partial loss of use of a body part, such as an arm, due to a job-related injury. Compensation is
limited to a percentage of the scheduled number of weeks.
Permanent Partial General Disability is paid when the employee sustains permanent partial
disability not specifically covered by the schedule. Compensation is based on the percentage of
disability remaining after recovery and is limited to 415 weeks.
Survivors' Benefits of $250,000 are paid to an employee's surviving spouse and dependent
children if death occurs as a result of injury. If there is no surviving spouse or dependents, the
legal heirs are entitled to $25,000. Burial expenses up to $5,000 also are covered.
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Kansas Division of Workers Compensation Annual Statistical Report 2004
ACKNOWLEDGEMENTS
This 30th Annual Statistical Report would not have been possible without the dedication and
resourcefulness of the following people and organizations:
WASHBURN UNIVERSITY
Statistical Consultation:
Dr. Ron Wasserstein, Professor of Statistics
Special thanks are due to the carriers, group pools and self-insured entities that were asked to
participate in the call for data that allowed the division to include an analysis of closed claims in
Kansas in Section 3.
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Kansas Division of Workers Compensation Annual Statistical Report 2004
TABLE OF CONTENTS
SECTION ONE: Administrative Profile of the Division of Workers Compensation ......................... 10
Organizational Chart FY 2004....................................................................................................... 11
Business, Accounting and Self-Insured ......................................................................................... 12
Coverage and Compliance ............................................................................................................. 13
Data Entry and Verification ........................................................................................................... 13
Technology and Statistics .............................................................................................................. 14
Workers Compensation Appeals Board......................................................................................... 15
Judicial ........................................................................................................................................... 16
Mediation ....................................................................................................................................... 17
Medical Services............................................................................................................................ 18
Fraud and Abuse ............................................................................................................................ 18
Ombudsman ................................................................................................................................... 19
Seminars Planning ......................................................................................................................... 20
Applications ................................................................................................................................... 21
Research......................................................................................................................................... 22
Data Collection ............................................................................................................................. 23
Rehabilitation................................................................................................................................. 23
Industrial Safety and Health........................................................................................................... 24
Boiler Safety .................................................................................................................................. 25
Industrial Safety ............................................................................................................................. 26
Industrial Hygiene.......................................................................................................................... 27
Federal/State Data Operations ....................................................................................................... 28
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Kansas Division of Workers Compensation Annual Statistical Report 2004
SECTION TWO
2-1 Kansas Total Occupational Injuries and Illnesses by Severity FY 1995-FY 2004.......................... 31
2-2 Counties Reporting Greatest Number of Total Injuries and Illnesses FY 2004 .............................. 32
2-3 Most Frequent Source Reported in Occupational Injuries and Illnesses (by Total Inj/Ill) FY 2004 ...... 33
2-4 Most Frequent Causes of Occupational Injuries and Illnesses (by Total Inj/Ill) FY 2004 .............. 33
2-5 Most Frequent Nature Reported in Occupational Injuries and Illnesses (by Total Inj/Ill) FY 2004 ...... 34
2-6 Most Frequent Body Member Reported in Occupational Injuries and Illnesses
(by Total Inj/Ill) FY 2004 ................................................................................................................ 35
2-7 Industries (SIC) with Greatest Number of Occupational Injuries and Illnesses FY 2004............... 36
2-8 Industries (NAICS) with Greatest Number of Occupational Injuries and Illnesses FY 2004 ......... 36
2-9 Occupational Injuries and Illnesses by Age FY 2004...................................................................... 37
2-10 Kansas Non-Fatal Occupational Injury and Illness Rate FY 1995-FY 2004................................... 40
2-11 BLS Survey of Kansas Private Sector Occupational Injury and Illness Incidence Rate 1995-2003 ...... 42
2-12 Kansas Non-Fatal Occupational Injury and Illness Rate by NAICS Division FY 2003-FY 2004 .. 44
2-13 Location (County) of Occupational Injuries and Illnesses by Severity FY 2004 ............................ 45
2-14 Source of Occupational Injuries and Illnesses by Severity FY 2004............................................... 48
2-15 Cause of Occupational Injuries and Illnesses by Severity FY 2004................................................ 50
2-16 Nature of Occupational Injuries and Illnesses by Severity FY 2004............................................... 52
2-17 Body Member Reported in Occupational Injuries and Illnesses by Severity FY 2004 ................... 54
2-18 Industries (SIC) Reporting Occupational Injuries and Illnesses by Severity FY 2004 ................... 56
2-19 Industries (NAICS) Reporting Occupational Injuries and Illnesses by Severity FY 2004.............. 74
SECTION THREE
3-1 Workers Compensation Fund Case Load Scheduled....................................................................... 91
3-2 Workers Compensation Fund Expenditure Analysis....................................................................... 91
3-3 Workers Compensation Fund Receipts Analysis............................................................................. 92
3-4 Workers Compensation Insurance Experience ................................................................................ 93
3-5 2004 Closed Claim Time Intervals .................................................................................................. 95
3-6 2004 Closed Claims Percentage of Impairment .............................................................................. 96
3-7 2004 Closed Claims Attorney Involvement with Claim.................................................................. 96
3-8 2004 Closed Claims Legal Expenses Associated with Claim ......................................................... 97
3-9 2004 Closed Claims Average Wage and Indemnity by Employer Payroll...................................... 97
3-10 2004 CCS: Workers Compensation Claims in Kansas .................................................................. 111
3-11 2003 CCS: Workers Compensation Claims in Kansas .................................................................. 112
3-12 2002 CCS: Workers Compensation Claims in Kansas .................................................................. 112
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Kansas Division of Workers Compensation Annual Statistical Report 2004
SECTION FOUR
4-1 Number of Fraud, Abuse and Compliance Cases Reported .......................................................... 117
4-2 Number of Cases ........................................................................................................................... 118
4-3 Fraud, Abuse and Compliance Collections.................................................................................... 118
CHARTS
SECTION TWO
2-1 Kansas Rate of Occupational Injury and Illness per 100 FTE by Severity FY 1995-2004 ............. 40
SECTION THREE
3-1 Distribution of Claimants by Age: CCS 2004 ................................................................................. 99
3-2 Average Claim Costs by Age of Claimant: CCS 2004 .................................................................... 99
3-3 Average Claim Costs by Gender of Claimant: CCS 2004............................................................. 100
3-4 Most Frequent Causes of Injury: CCS 2004.................................................................................. 100
3-5 Average Claim Costs for the Most Frequent Causes of Injury: CCS 2004 ................................... 101
3-6 Most Frequently Reported Nature of Claimant Injury: CCS 2004 ................................................ 101
3-7 Average Claim Costs for Most Frequently Reported Nature of Claimant Injury: CCS 2004 ....... 102
3-8 Most Frequent Major Body Region Injured by Claimant: CCS 2004 ........................................... 102
3-9 Average Claim Costs by Major Body Region Injured by Claimant: CCS 2004............................ 103
3-10 Most Frequent Scheduled Body Part Claims: CCS 2004 .............................................................. 103
3-11 Average Claim Costs for Most Frequent Scheduled Body Part Claims: CCS 2004...................... 104
3-12 Most Frequent Unscheduled Body Part Claims: CCS 2004 .......................................................... 104
3-13 Average Claim Costs for the Most Frequent Unscheduled Body Parts: CCS 2004 ...................... 105
3-14 Most Frequent Benefit Type of Claimant: CCS 2004 ................................................................... 105
3-15 Average Indemnity Costs by Benefit Type: CCS 2004 ................................................................. 106
3-16 Claim Costs for Carpal Tunnel and All Other Cumulative Injuries: CCS 2004............................ 106
3-17 Average Total Indemnity and Medical Claim Costs in Kansas 1999-2004................................... 110
3-18 Average Temporal Characteristics of Claims in Kansas 1999-2004 ............................................. 111
FIGURES
SECTION ONE
1-1 Organizational Chart Kansas Department of Labor Division of Workers Compensation
FY2004 ............................................................................................................................................ 11
9
Kansas Division of Workers Compensation Annual Statistical Report 2004
Section 1
Administrative Profile of the Kansas Division
of Workers Compensation
10
Kansas Division of Workers Compensation Annual Statistical Report 2004
Figure 1-1
Organizational Chart
Kansas Department of Labor
Division of Workers Compensation
FY 2004
Secretary of
Labor
Director of Workers
Compensation
11
Kansas Division of Workers Compensation Annual Statistical Report 2004
OPERATIONS SECTION
The unit’s responsibility also entails the assessment of fees to pay for the expenses necessary to
administer the workers compensation law by the Division of Workers Compensation. The
Business and Accounting/Self-Insured unit also manages all assessment accounting,
mathematical calculations, data accumulation and storage, voucher preparation and fee fund
deposits.
Other important unit functions include ordering and accounting for equipment and supplies for
the Division of Workers Compensation. The unit also sells the Workers Compensation Law
Book and the Medical Fee Schedule. In addition, the Unit prepares the annual Division Fiscal
Year Budget.
Table 1-1
Assessments Collected
Description Amount Collected
Reported losses paid in calendar year 2002 $416,144,933
Current assessment factor 0.0249
Assessments collected during calendar year 2003 $10,408,916
Number of carriers and self-insurers reporting 967
Source: Kansas Division of Workers Compensation
Table 1-2
Self-Insurance Summary
Activity FY 04 FY 03 FY 02 FY 01 FY 00 FY 99
Employers' New Applications
Approved 37 17 31 27 21 13
Canceled Permits 47 30 24 17 14 18
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Kansas Division of Workers Compensation Annual Statistical Report 2004
OPERATIONS SECTION
Currently the unit has a staff of 12, with three individuals in the Compliance unit. Two individuals are
working in Verification and Carrier/Employer Research. One employee is working in each of the
following units: Elections, Data Entry and Accident Reporting. The unit also has a floater who is well-
versed in all aspects of the Coverage and Compliance unit and is assigned to various units as needed.
The Compliance unit ensures that all businesses in Kansas are in compliance with and are aware of their
responsibilities regarding the Workers Compensation Act. The unit administers and enforces mandated
proof of coverage and compliance. The other units ensure that all accident reports are received and
accurate, with regard to the reporting requirements of the first report of injury. Each unit has specific
duties designed to ensure the accuracy of the first report of injury. The units work closely with the other
units, and with Compliance when necessary.
In FY 2004, the accomplishments in the Compliance unit consisted of 3,544 contacts to businesses that
might have been noncompliant. Of those businesses, 68 were referred to the Fraud unit for further
investigation and possible prosecution. Three hundred ninety-three businesses had to obtain coverage and
1,542 businesses had to provide a certificate of insurance.
The goal this coming year within the Compliance unit is to continually work with the division’s coverage
data collection organization (National Council on Compensation Insurance or NCCI) to enhance the
current proof of coverage delivery method. Additionally, the unit will work with the data transfer of
policy data from NCCI to the division in a national standard format. When this data transfer program is in
place, then the unit will work with both NCCI and Contributions in cross matching both records for
expediency of finding the noncompliant business owner.
The Verification unit confirms reported Social Security numbers with the Social Security Administration
submitted on first reports of occupational new and existing claimants. In addition it updates names and
addresses for existing claimants in the database.
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Kansas Division of Workers Compensation Annual Statistical Report 2004
OPERATIONS SECTION
The Technology and Statistics unit also maintains several data marts (small data warehouses) of
workers compensation claims information on work-related accidents in the state of Kansas. Unit
staff work extensively with the Information Services division of the Department of Labor to
resolve the division’s operational database implementation issues and continue to maintain and
enhance the database to insure data integrity and accuracy for both the division's administrative
and statistical needs. In addition, the Technology and Statistics unit manages all content for the
Division's Web pages located on the Department of Labor Web site.
Finally, the unit administers the division’s statutory Electronic Data Interchange (EDI) program,
an electronic method for insurance carriers and self-insured employers to report occupational
injury and workers compensation claims costs data by utilizing the International Association of
Industrial Accident Boards and Commissions’ (IAIABC) national standard. The program went
into production in November 2003. By the close of fiscal year 2004, more than 30 trading
partners, on behalf of nearly 200 insurance carriers and self-insured employers, were sending
EDI first and second reports of injury reports to the division. By February 2004 the weekly
volume of EDI first reports of injury constituted 35 percent of the total number of accident
reports filed with the division (total includes paper and EDI reports). This benchmark was met by
the division nearly nine months ahead of the targeted first year production goal.
2
This definition of information systems is taken from Steven Alter, “A General, Yet Useful Theory of Information
Systems,” Communication of the Association for Information Systems 1 (March, 1999): 28.
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Kansas Division of Workers Compensation Annual Statistical Report 2004
LEGAL SECTION
During fiscal year 2004, the Appeals Board issued 565 decisions. The board received 622
applications for review during that period and had a total of 661 dispositions (which include
dismissals and settlements). On July 1, 2004, the Department of Human Resources’ Web site
was reconstructed because of the name change to “Department of Labor.” The board’s new
website address is: http://www.dol.ks.gov/wcboard/wcappeal_RES.html.
The database is continually refined to meet the needs of the Appeals Board, the support staff and
the Workers Compensation division. It also is being refined for public dissemination of
information regarding the status of appeals cases.
The objective of the Appeals Board is to provide a fair and efficient appeals process within the
framework of the Kansas Workers Compensation Act, applicable case law and administrative
regulations.
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Kansas Division of Workers Compensation Annual Statistical Report 2004
LEGAL SECTION
Judicial Unit
The Judicial unit’s primary functions are to hold hearings and issue decisions and awards in
contested workers compensation claims. Administrative Law Judges must meet the timelines for
prehearing settlement conferences, preliminary hearings and regular hearings set by statute as
well as the timelines for awards and written decisions.
The Judicial unit’s accomplishments for the previous year include effectively managing
significant caseloads with a large number of preliminary, regular and post-award hearings;
monthly phone conferences to provide peer support and manage issues effectively to accomplish
the primary functions of the section in a uniform fashion; and continued technical and
management training for the administrative law judges.
Objectives for the Judicial unit include continue providing additional training for the
administrative law judges and their staff in technical, managerial and professional skills and
increasing educational opportunities for the public as well as the administrative law judges.
Table 1-3
FY2004 Administrative Law Judges' Case Report
Preliminary Regular Settlement
Cases Hearing Hearing Hearing
MONTH Assigned Reassigned Submitted Held Held Held
JULY 616 61 30 155 92 18
AUGUST 489 72 28 185 72 17
SEPTEMBER 564 49 27 140 62 32
OCTOBER 531 85 35 194 95 20
NOVEMBER 519 56 57 124 60 20
DECEMBER 482 61 37 134 69 23
JANUARY 501 60 42 187 69 20
FEBRUARY 474 66 41 155 82 10
MARCH 584 71 56 165 78 20
APRIL 518 82 53 157 77 12
MAY 503 77 38 119 85 16
JUNE 456 84 71 148 85 6
TOTALS 6,237 824 515 1,863 926 214
Source: Kansas Division of Workers Compensation
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Kansas Division of Workers Compensation Annual Statistical Report 2004
LEGAL SECTION
Judicial Unit
Mediation Unit
The Mediation unit provides parties a means of resolving disputes in an informal and non-
adversarial atmosphere. The objectives of the unit are threefold: educate the public on the
benefits of using mediation as a means of resolving disputes, increase utilization of the mediation
process and provide cost savings to the workers compensation system by reducing the number of
issues being litigated. It assists, through a variety of mechanisms such as a mediation conference,
both claimants and respondents in a timely manner − within seven days or as requested by the
parties. In addition, the Mediation unit provides educational training to insurance carriers on the
benefits of utilizing the mediation process as a means of resolving disputes associated with
workers compensation claims.
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Kansas Division of Workers Compensation Annual Statistical Report 2004
LEGAL SECTION
The current version of the Kansas Workers Compensation Schedule of Medical Fees was
implemented December 1, 2003. A new revision is required by law, due by approximately
December 2005. It is likely that the next revision will be refined to incorporate modifications of
a Resource Based Relative Value System (RBRVS) in order to enhance reimbursement validity.
In the fiscal year 2004, 306 cases were initiated. Twenty-seven cases were referred for civil
action and two cases were referred for criminal prosecution. Collection for fines and assessments
totaled $80,745 for the 2004 fiscal year.
The objectives of the unit are to assure that the injured worker receives required medical
treatment and benefits in a timely manner; protect the employer, carrier and medical provider
from fraudulent acts; assure that businesses within the state are compliant by maintaining worker
compensation insurance coverage; and assure that the Workers Compensation division receives
the required documents in a timely manner.
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Kansas Division of Workers Compensation Annual Statistical Report 2004
Ombudsman Unit
The primary functions of the Ombudsman unit are to assist injured workers, employers and other
parties to protect their rights under the Workers Compensation Act. The unit provides technical
assistance to all parties on workers compensation issues. The unit also assists unrepresented
claimants in obtaining a hearing, mediation or appeal. The Ombudsman unit provides
presentations and training opportunities to interested parties.
The Ombudsman unit was responsible for establishing a set of protocols and guidelines for
services to employers. Specifically during fiscal year 2004, the Ombudsman unit provided a
point of contact for all parties to clarify issues and obtain information. The unit received and/or
initiated 27,502 contacts, which included general information, issues regarding reported and
unreported accidents and on-site visits to employers. The Ombudsman unit also provided
educational presentations to 1,241 individuals during fiscal year 2004, as well as increasing
public awareness of resources of presentations on workers compensation issues. Additionally, it
provided technical assistance to employers through on-site visits and training.
The objectives of the Ombudsman unit involve increasing employer contacts by providing more
training to employer groups and making more on-site visits to employers who need assistance. It
also intends to increase the unit’s ability to initiate contact with injured workers to see if
appropriate information is being received as required by statute, as well as to increase public
awareness of the availability of Ombudsman assistance in alternative dispute resolution. The unit
also seeks to increase public awareness and use of the unit’s Web site for information and
downloadable forms.
Table 1-4
FY 2000-FY 2004 Ombudsman Contacts
Category FY 01 FY 02 FY 03 FY 04 Total
Employees 13,253 14,012 13,444 12,723 41,101
Employers 3,484 4,313 4,501 4,232 10,973
Insurance Carriers 1,570 1,933 1,703 1,807 5,469
Insurance Agents 778 1,185 1,127 1,131 2,484
Attorneys 1,296 1,392 1,245 1,647 4,118
Health Care 858 1,107 1,249 1,471 2,866
Miscellaneous 3,310 4,160 3,930 4,491 9,528
Ombuds Files 4,197 N/A* N/A* N/A* 10,725
Total Contacts 28,746 28,102 27,199 27,502 87,264
Source: Kansas Division of Workers Compensation
*For 2002 & 2003 Ombuds File Contacts are incorporated into other categories.
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Kansas Division of Workers Compensation Annual Statistical Report 2004
For the 2004 Wichita Workers Compensation Seminar there were 281 attendees at this two-day
event. Attendees securing continuing education credit consisted of 97 attorneys, 65 nurses and 19
case managers. An additional 17 attendees asked for proof of attendance in order to self-submit
continuing education credits in occupations KDOL did not pre-authorize. There were 30
exhibitors. For the 2004 Overland Park Workers Compensation Seminar there were 452
attendees at this two-day event. Attendees securing continuing education credits consisted of 152
attorneys, 88 nurses and 47 case managers. An additional 24 attendees asked for proof of
attendance in order to self-submit continuing education credits in occupations KDOL did not
pre-authorize. There were 49 exhibitors.
At the 2004 Kansas Safety and Health Conference there were 270 attendees at this four-day
event. Along with a variety of continuing education credits offered during the two-day
conference, this event offered six professional development classes. There were 37 inside
exhibitors and one outdoor exhibitor.
The objectives for the unit for the upcoming fiscal year the unit will engage in an active outreach
program and continue to offer the opportunity to speak “first-hand” with staff members and other
professionals in their fields. Staff will continue to provide quality events at affordable prices and
produce events which offer topics of importance to those who work in the workers compensation
and industrial safety and health fields. Finally, the unit will provide the opportunity to view the
latest products and services, deliver the maximum possible continuing education credits, and
maintain and/or increase current attendance.
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Kansas Division of Workers Compensation Annual Statistical Report 2004
Applications Unit
The Applications unit researches applications for hearings to assure that appropriate counsel,
insurance carrier, employer and claimant are reflected in each hearing. The unit researches and
reviews cases to assure the filing of all necessary and required legal documentation have been
met. Additionally, the unit assigns judges based on a set of criteria and assigns dates for hearings
to meet statutory requirements. The Applications unit also creates a physical docket file that
reflects all required documentation pertaining to the legal claim for workers compensation for
injury and the response from both the employer and the insurance carrier. This file becomes the
official legal document upon which all present and future legal proceedings will rely for
information. The Applications unit also records and enters information into the Web-based
database and appropriate notices of hearing are sent to all parties involved with each case.
The Applications unit strives to research and process all preliminary hearing applications in three
or fewer days. The unit intends to continue to provide outstanding service to customers both
internal and external. In addition, the unit plans to continue development of plans to implement
an imaging system to process accident reports and other documents in the Workers
Compensation division.
For fiscal year 2004, the unit processed and researched 15,566 applications, 7,233 preliminary
hearing applications and 5,403 applications for a regular hearing. Assignment of an
administrative law judge was made for each case and notices were provided to all parties
involved. There were 47 applications for a surviving spouse or dependent hearing and 601 post
award medical applications filed with the Applications unit. Finally, a total of 2,282
“miscellaneous” applications were processed by the unit, include the following: all applications
for amendments, review and modifications, penalties, insolvent impleading, corrections and
returned notices.
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Kansas Division of Workers Compensation Annual Statistical Report 2004
Research Unit
The Research unit looks into requests for information from both internal and external customers.
These customers include attorneys, judges, claimants, insurance companies and the general
public. These requests for research concern division records pertaining to past and present
workers compensation cases. The unit also verifies requests to assure that legal requirements
concerning the confidentiality of workers compensation records are met. It conducts research
through computerized and hard copy files of workers compensation histories of injured workers.
Responses are provided as appropriate and according to legal requirements.
The Research unit responded to more than 35,000 research requests from attorneys, insurance
carriers and employers for workers compensation claimant histories during fiscal year 2004. It
plans to keep turnaround time for research requests to within four days. The Research unit also
intends to continue to provide outstanding service to customers inside and outside of the Division
of Workers Compensation.
Table 1-5
FY 2004 Requests for Information from the Research Unit
Kansas
Insurance Walk- Social Insu.
Month Attorneys Company ins Security Employer Dept. Misc. Total
2003
July 765 310 0 4 1,647 1 69 2,796
August 734 291 0 7 1,750 14 54 2,850
September 699 323 0 3 1,666 2 45 2,738
October 779 364 0 1 1,630 0 62 2,836
November 657 289 0 4 1,087 0 39 2,076
December 661 314 0 7 1,315 0 43 2,340
2004
January 723 271 0 8 1,597 6 40 2,645
February 684 314 0 9 1,603 0 83 2,693
March 718 396 0 6 2,016 6 101 3,243
April 694 354 0 15 1,897 0 62 3,022
May 636 345 0 5 2,309 0 75 3,370
June 687 407 0 1166 2,093 0 86 4,439
Total
Requests For
Year 8,437 3,978 0 1235 20,610 29 759 35,048
Average
Requests Per
Day 33.61 15.85 0 4.92 82.11 0.12 3.02 139.63
Total Working Days in the year: 251
Source: Kansas Division of Workers Compensation
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Kansas Division of Workers Compensation Annual Statistical Report 2004
The Data Collection unit collected information on dollar amounts, type of payments made, body
parts being compensated, percentages of disability rating and attorney fees during the fiscal year
of 2004. The unit also collected court reporter fee information.
Rehabilitation Unit
The Rehabilitation unit has responsibility for coordinating vocational rehabilitation services for
injured workers when the insurance company/employer elects to provide services. This unit also
reviews medical management closures to determine the need for referral to other vocational
programs and services when the insurance company/employer elects not to provide services.
Monitoring and providing technical assistance for both public and private vocational
rehabilitation providers is also part of the responsibilities of this unit.
In FY 2004, the Rehabilitation unit provided oversight for 48 referrals to qualified private sector
vocational rehabilitation vendors. Rehabilitation plans were developed for thirty individuals,
with twenty-one receiving job placement services and four in training programs. Eleven injured
workers were employed at time of closure or service completion. The unit received 882 medical
management referrals. Qualified rehabilitation vendors returned 398 injured workers to their
employer (at time of injury) through individualized services. The unit reviewed 1,021 medical
management closure reports to determine those in need of vocational rehabilitation or
community services. In addition, 276 injured workers were notified of vocational options
available through the private and/or public sector vocational services. At the end of FY 2004,
thirty referred workers were involved with Kansas Rehabilitation Services and out-of-state
vocational rehabilitation agencies, with 12 currently in a vocational rehabilitation plan.
23
Kansas Division of Workers Compensation Annual Statistical Report 2004
The Kansas 21(d) Consultation Project provides safety and health services through a
federal grant to private sector employers.
The Public Sector Compliance program monitors the public sector (cities, counties,
state agencies, school districts, etc.) by performing compliance audits under KSA 44-636.
The Accident Prevention program evaluates insurance companies to ensure that safety
and health services are being provided to those insured as required by KSA 44-5,104.
Insurance company and employer records are reviewed annually to assess the quality and
quantity of safety services provided in Kansas. An annual report is completed each year
and forwarded to the State Insurance Commissioner.
Boiler Safety Inspection and Certification is a fee funded program under KSA 44-913
et seq.
The Kansas Annual Safety and Health Conference is managed with assistance from a
committee that brings state regulators and safety directors from private industry, the
public sector and academia together to plan and organize a safety conference for Kansas.
The conference is self-supporting and seeks to address the relevant safety issues in a
variety of workshops and presentations.
24
Kansas Division of Workers Compensation Annual Statistical Report 2004
Table 1-6
Boiler Safety Unit FY2004 Activities
State Insurance
Unit Activity Inspections Inspections Totals
Inspections 3,320 8,626 11,946
Deficiencies 1,393 837 2,230
Certificates 2,904 7,642 10,546
Source: Kansas Division of Workers Compensation
25
Kansas Division of Workers Compensation Annual Statistical Report 2004
Table 1-7
Industrial Safety Unit FY 2004 Activities
Category of
Activity Type of Activity Total
21(d) Consultation Initial Visits 1,261
Follow-up Visits 273
Serious Hazards 4,377
Other-than- 1,258
serious
Training Sessions 55
Public Sector Agencies 105
Enforcement Inspected
Site Inspections 525
Employees 5,578
Hazards 989
Complaints 4
Addressed
Ergonomic 22
Complaints
Ergonomics Site 32
Assessments
Employees 717
Hazards 79
Source: Kansas Division of Workers Compensation
26
Kansas Division of Workers Compensation Annual Statistical Report 2004
Table 1-8
Industrial Hygiene Unit FY 2004 Activities
Category of
Activity Type of Activity Total
21(d) Consultation Initial Visits 180
Follow-up Visits 7
Serious Hazards 149
Other-than-serious 88
Training Sessions 1
Public Sector Inspections (12
Enforcement IAQ complaints) 13
Employees
Covered 662
Hazards 0
Source: Kansas Division of Workers Compensation
27
Kansas Division of Workers Compensation Annual Statistical Report 2004
Table 1-9
Federal/State Data Operations Unit
FY 2004 Activities
Activity Total
AP audits completed 620
Employees affected 25,003
Hazards Identified 5,258
Insurance Company
Inspections 7,580
Insurance Policy Holders 53,147
Source: Kansas Division of Workers Compensation
28
Kansas Division of Workers Compensation Annual Statistical Report 2004
Section 2
Workplace Injuries and Illnesses in Kansas
FY 2004
29
Kansas Division of Workers Compensation Annual Statistical Report 2004
The state of Kansas has a compelling interest in the safety, health and productivity of its
workforce. An important aspect of that commitment is the division’s daily monitoring of the
workplace environment and periodic analysis of the incidence and severity of occupational
injuries and illnesses within the state. Every year the division publishes its decision support data
for the Legislature and interested parties in the form of the Annual Statistical Report. The first
part of this section reports on many aspects of occupational injuries and illnesses in the state of
Kansas for FY 2004, including the causes, nature and source, and industries in which they occur
and the body member implicated in the reported injuries and illnesses. Discussed next is the
widely reported private industry injury incidence rates published by the federal Bureau of Labor
Statistics (BLS) of the United States Department of Labor and Kansas Department of Labor
(recently, responsibility was transferred to the Labor Market Information Systems division).
Calculated incidence rates for “non-federal” employment in the state of Kansas for the last 10
fiscal years are compared and contrasted with those of BLS.
There were 64,374 occupational injuries and illnesses reported to the Division of
Workers Compensation during FY 2004. The FY 2004 total reflect all accidents
occurring during the year, including fatalities, and represents a decrease of 3,763 reported
injuries and illnesses or a 5.5 percent decrease from last year’s total.
From another perspective 176 employees per day were either injured or killed on the job
in Kansas last fiscal year.
Workplace fatalities, the most severe type of injury, increased slightly (4.8 percent) from
the previous year (to 44 from 42 reported deaths) but were well below the 10-year
average of 57 reported cases.
The 48,298 “no time lost” injuries and illnesses reported constitute 75 percent of all
reported injuries and illnesses. “No time lost” injuries decreased 12 percent from the
previous year’s totals.
“Time lost” injuries and illnesses totaled 16,032, a 31 percent increase from the previous
year’s totals but this is almost entirely due to the fact that the division has stop utilizing
the “hospitalization” coding for statistical purposes. Instead, due to the lack of data,
standards and use by other states, the division now collapses all reports that signal a
hospitalization as a “lost time” case to be consistent with the U.S. Department of Labor’s
practices.
30
Kansas Division of Workers Compensation Annual Statistical Report 2004
One limitation of reported aggregate totals is that they do not account for year-to-year changes in
the workforce population within Kansas. Perhaps the least sophisticated benchmark statistic for
comparing year-to-year totals without controlling for workforce population increases/decreases
would be to calculate the percentage of total injuries and illnesses that resulted in “no time lost,”
“time lost,” and in fatality. The rationale is that the state has an interest in knowing what
percentage of total injuries and illnesses constitute the range of severity that either decreases
productivity, endangers worker safety, disrupts labor participation or results in death. The
incidence rate per 100 full-time equivalent workers, in order to do a fair year-to-year comparison
of occupational injury and illness behavior in Kansas, is discussed below.
Table 2-1
Kansas Total Occupational Injuries & Illnesses by
Severity FY1995-FY2004
As expected, counties with the largest population totals report the greatest number of
occupational injuries and illnesses (see Table 2-2).
Kansas’ largest city, Wichita is located in Sedgwick County and reported the most
number of cases.
Johnson County, part of metropolitan Kansas City, includes the second and fifth largest
cities in Kansas (Overland Park and Olathe, respectively) and reported the second largest
number of total injuries and illnesses.
31
Kansas Division of Workers Compensation Annual Statistical Report 2004
73 percent of the total injuries and illnesses reported in Sedgwick County and 78 percent
of total cases from Johnson County resulted in no time lost from work. Shawnee County,
which includes the capital of Topeka, had the third largest number of reported total cases.
The aggregate totals for all Kansas counties are listed in Table 2-13.
Table 2-2
Counties Reporting Greatest Number of Total Injuries
& Illnesses FY 2004
No Time Time Total
County Lost Lost Fatal Inj/Ill
SEDGWICK 7,335 2,687 6 10,028
JOHNSON 7,764 2,241 5 10,010
SHAWNEE 3,871 1,131 1 5,003
WYANDOTTE 2,607 956 3 3,566
UNKNOWN 2,313 1,237 7 3,557
DOUGLAS 1,510 538 1 2,049
SALINE 1,659 284 0 1,943
RENO 1,199 353 2 1,554
OTHER STATE 1,163 269 7 1,439
RILEY 1,068 363 1 1,432
Source: Kansas Division of Workers Compensation
The most frequent source of both total occupational injuries and illnesses and “no time
lost” cases in FY 2004 were due to bodily motion (See Table 2-3).
Bodily motion injuries accounted for the most frequently reported “no time lost” and
“time lost” cases.
The aggregate totals for all types of sources of injury and illness are listed in Table 2-14.
Again, the physical act of lifting is the most frequent cause of occupational injury for
“total injuries and illnesses,” “no time lost” and “time lost” cases (See Table 2-4).
27 percent of lifting injuries result in time lost for the injured worker.
Objects being lifted and non-powered hand tools were the most frequent cause of injury
after lifting and unclassifiable injuries.
The aggregate totals for all causes of injury and illness are listed in Table 2-15.
32
Kansas Division of Workers Compensation Annual Statistical Report 2004
Table 2-3
Most Frequent Source Reported in Occupational Injuries & Illnesses
by Severity FY 2004
No Time Time Total
Source Lost Lost Fatal Inj/Ill
MISCELLANEOUS (EARPLUGS, SHEETROCK ETC) 6,233 720 6,953
PERSON, OTHER THAN INJURED 3,881 629 2 4,512
BODILY MOTION 3,501 772 4,273
BOXES, BARRELS, CONTAINERS, PACKAGES 2,926 572 3,498
FURNITURE, FIXTURES, FURNISHINGS ETC 2,520 436 2,956
METAL ITEMS, UNS 1,467 223 2 1,692
KNIVE OR RAZOR 1,418 125 1,543
FLOOR 1,295 237 1,532
HAND TOOLS, NOT POWERED 1,280 152 1,432
MACHINES, UNS 1,130 228 1 1,359
Source: Kansas Division of Workers Compensation
Table 2-4
Most Frequent Causes of Occupational Injuries & Illnesses
(by Total Inj/Ill) FY 2004
No Time Time Total
Cause of Injuries & Illnesses Lost Lost Fatality Inj/Ill
LIFTING 5,348 1,973 0 7,321
OTHER INJURY (NOT OTHERWISE CLASSIFIED) 5,286 814 14 6,114
OBJECT BEING LIFTED OR HANDLED 3,799 703 0 4,502
HAND TOOL, UTENSIL; NOT POWERED 2,471 494 0 2,965
ON SAME LEVEL 2,169 631 0 2,800
REPETITIVE MOTION 2,058 552 0 2,610
FOREIGN BODY IN EYE 2,104 491 0 2,595
PUSHING OR PULLING 1,810 668 0 2,478
STRAIN OR INJURY BY MISCELLANEOUS 1,339 950 0 2,289
FALLING OR FLYING OBJECT 1,544 674 0 2,218
Source: Kansas Division of Workers Compensation
6,905 reports of occupational injuries filed with the division failed to include an adequate
explanation of the nature of the occupational injury or illness (See Table 2-5).
Of the accident reports filed that did include an explanation, strains and lacerations are
the two most common types of injuries reported (same as previous year).
69 percent of the reported strains and 80 percent of reported lacerations did not result in
lost work time.
The aggregate totals for all natures of injury and illness are listed in Table 2-16.
33
Kansas Division of Workers Compensation Annual Statistical Report 2004
Table 2-5
Most Frequent Nature Reported in Occupational Injuries
& Illnesses by Severity FY 2004
Time Total
Nature No Time Lost Lost Fatal Inj/Ill
STRAIN 11,677 5,324 0 17,001
LACERATION 7,284 1,850 0 9,134
NO EXPLANATION 5,987 909 9 6,905
CONTUSION 4,419 1,746 2 6,167
ALL OTHER SPECIFIC INJURIES 3,718 1,132 10 4,860
PUNCTURE 2,619 472 1 3,092
SPRAIN 1,895 816 0 2,711
FOREIGN BODY 2,154 554 0 2,708
FRACTURE 1,136 889 0 2,025
INFLAMMATION 1,589 362 0 1,951
Source: Kansas Division of Workers Compensation
Table 2-6 lists the body member most frequently associated with reported occupational injuries
and illnesses for FY 2004.
Injuries and illnesses involving the finger(s) constitute the greatest number of total
reported cases.
Injuries involving the low back area had the second greatest total frequency for FY 2004.
Of cases involving fingers, just over 80 percent resulted in no lost time while only 19
percent require time away from work. In contrast, 68 percent of injuries involving the low
back are “no time lost” cases while 32 percent result in time lost for the worker.
The aggregate totals for all body members associated with injury and illness are listed in Table
2-17.
34
Kansas Division of Workers Compensation Annual Statistical Report 2004
Table 2-6
Most Frequent Body Member Reported in Occupational
Injuries & Illnesses by Severity FY 2004
Body Member No Time Lost Time Lost Fatal Total Inj/Ill
FINGER(S) 5,450 1,307 0 6,757
LOW BACK AREA (LUMBAR,
LUMBOSACRAL) 4,429 2,068 0 6,497
KNEE 2,999 1,183 0 4,182
MULTIPLE MEMBERS
INJURED 3,549 471 19 4,039
MULTIPLE UPPER
EXTREMITIES 3,222 687 0 3,909
HAND 2,967 838 0 3,805
EYE(S) 2,733 704 0 3,437
SHOULDER(S) 2,122 875 0 2,997
MULTIPLE BODY PARTS 1,811 994 6 2,811
WRIST 1,856 658 0 2,514
Source: Kansas Division of Workers Compensation
Tables 2-7 and 2-8 list the industries, by both the Standard Industrial Classification (SIC) and
North American Industrial Classification System (NAICS), in Kansas that reported the greatest
number of total occupational injuries and illnesses to the Division of Workers Compensation
over the past fiscal year. The division accepts either SIC or NAICS (both 1997 & 2002) codes
for reporting the industry associated with the occupational injury or illness.
For injuries reported under the Standard Industrial Classification system, general medical
and surgical hospitals ranked first for total frequency in FY 2004, however, of the
reported injuries and illnesses, 72 percent were “no time lost” cases.
For SIC classified industries, the public sector reported the second largest number of total
injuries and illnesses and, similar to health services, some 78 percent were “no time lost”
cases.
For injuries reported under the North American Industrial Classification System, general
elementary and secondary schools ranked first for total frequency in FY 2004, however,
of the reported injuries and illnesses, 68 percent were “no time lost” cases.
For NAICS classified industries, general medical and surgical hospitals reported the
second largest number of total injuries and illnesses and, similar to health services, some
80 percent were “no time lost” cases.
The aggregate totals for all industries are listed in Tables 2-18 (SIC) and 2-19 (NAICS).
35
Kansas Division of Workers Compensation Annual Statistical Report 2004
Table 2-7
Industries (SIC) with Greatest Number of Occupational Injuries &
Illnesses FY 2004
No Time Time Total
Industry (SIC) Lost Lost Fatal Inj/Ill
GENERAL MEDICAL AND SURGICAL HOSPITALS 1,903 743 0 2,646
EXECUTIVE AND LEGISLATIVE OFFICES, COMBINED 2,031 563 1 2,595
EATING AND DRINKING PLACES 1,885 580 1 2,466
SKILLED NURSING CARE FACILITIES 1,458 284 0 1,742
TRUCKING, EXCEPT LOCAL 987 606 3 1,596
MEAT PACKING PLANTS 1,416 105 0 1,521
BUSINESS SERVICES, NEC 1,101 319 0 1,420
GROCERY STORES 968 193 2 1,163
DEPARTMENT STORES 875 218 0 1,093
VARIETY STORES 586 349 0 935
Source: Kansas Division of Workers Compensation
Table 2-8
Industries (NAICS) with Greatest Number of Total Occupational
Injuries & Illnesses FY 2004
No Time Time Total
Industries (NAICS) Lost Lost Fatal Inj/Ill
ELEMENTARY AND SECONDARY SCHOOLS 1,558 720 0 2,278
Table 2-9 lists the age characteristics of injured workers for FY 2004.
Workers ages 20-29 (15,182), 30-39 (14,618), and 40-49 (16,409) report the greatest total
number of injuries and illnesses to the Division of Workers Compensation for FY 2004
(see Table 2-9).
36
Kansas Division of Workers Compensation Annual Statistical Report 2004
The percentage of no time lost injuries was nearly 75 percent for the 20-29 stratum, 30-39
stratum and 40-49 stratum.
Table 2-9
Occupational Injuries & Illnesses by
Age FY 2004
Total
Age No Time Lost Time Lost Fatal Inj/Ill
19 & under 1,620 508 0 2,128
20 - 29 11,500 3,678 4 15,182
30 - 39 10,988 3,619 11 14,618
40 - 49 12,327 4,077 5 16,409
50 - 59 8,140 2,842 12 10,994
60 - 69 2,260 846 6 3,112
70 - 79 272 143 2 417
80 & Above 56 58 0 114
Source: Kansas Division of Workers Compensation
There are two sources of occupational injury and illness data reported in this section. The Survey
of Occupational Injuries and Illnesses is a Federal/State program administered by the United
States Department of Labor’s Bureau of Labor Statistics (BLS) and cooperating state agencies
throughout the nation. In Kansas, the cooperating state agency that helps administer the survey is
the Department of Labor, Labor Market Information Services division (LMIS). The annual
survey measures the incidence rates of workplace injuries and illnesses for the nation as a whole
and for each participating state, as well as case and injured worker demographic data (see
Appendix A). The Division of Workers Compensation does not directly participate in the BLS
survey but is an active consumer of its information. The division believes that the private sector
incidence rates provided by BLS and LMIS help augment both this annual report and the
statutory obligation to monitor workplace injuries and illnesses in the state for health and safety
purposes.
However, the division does believe that it can contribute to the discourse on workplace injury
incidence rates in Kansas for several reasons. First, employers covered under the Workers
Compensation Act are required to report all employee occupational injuries and illnesses to the
division within 28 days of the date of injury or onset of illness. The division has aggregated and
reported this data in its Annual Statistical Report for many years but did not publish its
calculated rates of incidence per 100 full-time equivalent employees until FY 2001. The division
reports its own calculated occupational injury incidence rates (see Appendix A for
methodology). Second, the division does have an institutional advantage (relative to BLS and
37
Kansas Division of Workers Compensation Annual Statistical Report 2004
LMIS) in that it, by law, is able to collect data on the entire population of workplace injuries and
illnesses in Kansas because it has the legal authority to collect injury data on state and local
public sector employees in addition to the private sector.1 This is important because the state and
local public sector workforce is one of the largest employers in Kansas and reports a significant
percentage of the total workplace injuries and illnesses each year. Finally, it should be noted that
the Division of Workers Compensation is able to publish its occupational injury statistics in a
timelier manner than both BLS and LMIS. In this report, it publishes incidence rates for all
employers covered under the Workers Compensation Act through fiscal year 2004 (up to and
including June 30, 2004) whereas the most recent national data available from BLS is through
calendar year 2003, and state-specific data is only published through calendar year 2002 (as of
time of printing). We may be able to identify injury and illness trends more quickly and use this
in-house information as a basis for targeting resources, through the Industrial Safety and Health
section, for injury prevention and/or safety education.
While it is true that there is no absolute acceptable level of injury incidence, relatively speaking,
the lower the rate of injury the better. An important question is how should the average Kansan
interpret the “Total Injuries and Illnesses” incidence rate? For example, if the incidence rate for
total injuries and illnesses for Kansas for any given year were 5.3 injuries per 100 full-time
workers, would it be reasonable to conclude that roughly 5 percent of full-time workers suffered
some sort of occupational injury that year? We believe that this would be a fair interpretation
provided that we assume each worker within this 5.3 percent was injured only once during the
year under study. In other words, for every one hundred full-time private sector workers in
Kansas there were 5.3 injuries reported that year for our hypothetical example. If consumers of
this information would want to know what occupations in Kansas are more at risk for injury than
others, then the total injury and illness incidence rate would not provide that information. They
would need to consult the industry cluster estimates of injury incidence provided annually by the
Kansas Department of Health and Environment or the non-federal incidence rates reported in the
Kansas Division of Workers Compensation Annual Statistical Report.
The BLS measures of “Total Lost Workday Cases” and “Other Recordable Cases” (BLS used to
categorize these as “Cases Without Lost Workdays” and is roughly the same as no time lost
cases) are similar to measures reported by the Division of Workers Compensation in past annual
statistical reports (see below). Under the Kansas Workers Compensation Act, employers are
required to report to the division:
1
Under its commerce power granted by the Federal Constitution, and as interpreted by the United States Supreme
Court (See U.S. v. Lopez, 514 U.S. 558-559 (1995); “three broad categories of activity that Congress may regulate
under its commerce power…Congress may regulate the use of the channels of interstate commerce…Congress is
empowered to regulate and protect the instrumentalities of interstate commerce, or persons or things in interstate
commerce, even though the threat may come only from intrastate activities…Congress’ commerce authority
includes the power to regulate those activities having a substantial relation to interstate commerce,…i.e., those
activities that substantially affect interstate commerce.”. The federal government can require employers to log all
occupational injuries and illnesses and report them to BLS and/or OSHA. The Federal Constitution, however, does
not give Congress the authority to regulate the states (and its political subdivisions) as states and therefore, compel
them to report the workplace injuries of state and local public servants to the Bureau of Labor Statistics.
38
Kansas Division of Workers Compensation Annual Statistical Report 2004
[I]f the personal injuries which are sustained by such accidents, are sufficient
wholly or partially to incapacitate the person injured from labor or service for more
than the remainder of the day, shift or turn on which such injuries were sustained.2
The division classifies nonfatal occupational injuries as “lost time,” “no lost time” and fatal.
“Lost time” injuries are those that “incapacitate the person injured from labor or service for more
than the remainder of the day, shift or turn.” “No lost time” injuries are defined as those in which
the employee did not miss work beyond the remainder of the day, shift or turn. Fatal injuries are
self-explanatory. All of the division’s severity classifications are similar to the BLS variables in
the Occupational Injuries and Illnesses Survey and are broad enough to describe the diversity of
injuries within each category yet specific enough to discern substantive differences in severity
(see explanation below). “Total Lost Workday Cases” injuries and illnesses per 100 full-time
workers is a statistic used to measure the incidence of injuries that meet the criterion of “lost
workday.” However, a year-to-year comparison between the BLS study and the division’s data is
difficult due to both the time lag in reporting by BLS and the differing time frames of the studies.
Table 2-10 lists the Kansas non-fatal occupational injury and illness rate for the last ten fiscal
years (FY 1995-FY 2004) as calculated by the Division of Workers Compensation. See Figure
2-1 below for graphical representations of the data.
For “total injuries and illnesses” the incidence per 100 full-time equivalent workers
(FTE) in the private and public sectors in Kansas was 5.0 in FY 2004. The total injuries
and illnesses incidence rate rose slightly over the last year (4.2 percent). This is the first
time in the last ten years (since FY 1995) that the total injury incidence rate has not
declined. However, the total injury and illness incidence rate has declined by 39 percent
over the last ten years, and by 27 percent since FY 2000.
The “time lost” injuries and illnesses incidence rate was 1.25 per 100 full-time equivalent
workers (FTE) in FY 2004, a 36 percent increase in the rate from the previous year.
The fatality rate is nearly unchanged from the previous year.
The “no time lost” injuries and illnesses incidence rate decreased for the fourth
consecutive year. The FY 2004 rate of 3.75 injuries and illnesses per 100 FTE marks a
3.5 percent decrease from the previous year and a 31 percent decrease from FY 2000
(5.45 injuries and illnesses per 100 FTE).
2
K.S.A.44-557.
39
Kansas Division of Workers Compensation Annual Statistical Report 2004
Table 2-10
Kansas Non-Fatal Occupational Injury &
Illness Incidence Rate* FY 1995-FY 2004
No Time Lost Time Lost
Fiscal Illnesses & Injuries & Total Injuries
Year Injuries* Illnesses* Fatal Injuries* & Illnesses*
FY1995 4.54 3.64 0.0058 8.19
FY1996 5.80 2.28 0.0051 8.08
FY1997 6.02 1.99 0.0052 8.01
FY1998 4.99 2.83 0.0055 7.82
FY1999 5.33 2.06 0.0047 7.39
FY2000 5.45 1.42 0.0053 6.88
FY2001 4.87 1.54 0.0033 6.42
FY2002 3.93 1.51 0.0040 5.45
FY2003 3.89 0.92 0.0030 4.80
FY2004 3.75 1.25 0.0034 5.00
Source: Kansas Division of Workers Compensation, Kansas Labor Market
Information Services
*Per 100 Full-time Equivalent Non-Federal
Workers
Figure 2-1
Kansas Rate of Occupational Injury and Illness
9.00 FY 1995-FY 2004
8.19 8.08
8.00 8.01
7.82
7.39
7.00
6.88
6.42
6.00 6.02
5.80
5.33 5.45 5.45
5.00 4.99 4.87 5.00
4.80
4.54
4.00 3.93 3.89 3.75
3.64
3.00
2.83
2.28
2.00 1.99 2.06
0.00
FY1995 FY1996 FY1997 FY1998 FY1999 FY2000 FY2001 FY2002 FY2003 FY2004
No Time Lost Illnesses & Injuries* Time Lost Injuries & Illnesses* Total Injuries & Illnesses*
40
Kansas Division of Workers Compensation Annual Statistical Report 2004
The Federal Bureau of Labor Statistics Survey of Statewide Occupational Injuries and
Illnesses in the Private Sector
BLS defines a lost workday as “the number of workdays (consecutive or not) beyond the day of
injury or onset of illness.” This number includes both actual days away from work and days
during which the employee is assigned, due to the injury or illness, to restricted work activity,3
and is a proxy for measuring the severity of injury incurred by the employee. Its logical
counterpart is the former “Cases Without Lost Workday Cases,” now categorized as “Other
Recordable Cases,” which is defined as the obverse of injury resulting in time away from work
or restricted work activity. It too is a proxy for measuring severity and would include any injury
incurred that did not result in lost workdays or restricted activity. For example, if a Kansas
employee were to cut a finger while preparing food and did not return for the rest of the day
(presumably to receive medical treatment) but did return the following scheduled workday they
would be designated as an “Other Recordable Case.” In other words, no time is lost beyond the
day of injury or onset of illness.
BLS reported an incidence rate of 9.7 injuries and illnesses per 100 full-time workers for Kansas
in 1994. That incidence rate dropped to a eight-year low of 6.2 injuries and illnesses per 100 full-
time workers in calendar year 2002, the most recent year of the survey available for the state of
Kansas (See Table 2-11). Below are findings from the survey research that are good comparative
data for the division’s published incidence rates.
The “Total Injuries and Illnesses” incidence rate (see Table 2-11) for the private sector in
Kansas reveals a decrease in the frequency of occupational injury and illness every
successive year except for a slight spike in 2000 (up from 7.6 to 7.8). This is consistent
with the national trend (yearly declines for every year however) in “Total Injury and
Illness” incidence rates but Kansas still has a higher frequency of injuries than the
national average for every year of the study. Data is not available for Kansas rates for the
2003 calendar year but the national total injuries rate decreased to 5.0.
The “Total Lost Workday Cases” incidence rate for Kansas declines or remains level
from 1994 (4.2 per 100 workers) to 2002 (3.0 per 100 workers). The Kansas numbers are
slightly higher than the national average for each of the nine years, which also has
declined or remained constant every year as well, to a low of 2.6 lost workday injuries
per 100 full-time workers in 2003.
The “Lost Workday Cases with Days Away from Work” incidence rate for the Kansas
private sector has dropped from 2.5 injuries and illnesses per 100 workers in 1994 to 1.4
per 100 workers in 2002. This trend in injuries resulting in days away from work mirrors
rather closely what is occurring at the national level and is a good sign that the severity of
the Kansas injuries are no greater than the national average.
The “Cases Without Lost Workdays” (now “other recordable cases”) incidence rate in
Kansas declined from 5.5 injuries per 100 workers (1995) to 3.2 per 100 workers in 2002.
Kansas has higher than average (national) rates for cases without lost workdays for every
year of the study (data not available for 2003), indicating that a greater percentage of the
state’s total injuries and illnesses do not result in days away from work or restricted work
3
Restricted work activity includes assigning an employee to another job on a temporary basis, less than full-time employment or
a reduction in duties for the position of which the injury occurred.
41
Kansas Division of Workers Compensation Annual Statistical Report 2004
activity. In other words, Kansas has a greater frequency of the less severe type of
occupational injuries and illnesses.
The Kansas “Total Injuries and Illnesses” rate is down by 3.5 injuries and illnesses per
100 workers for the period 1995-2002, a relative change of 36.1 percent. Similarly, the
national average for total injuries has decreased by 2.7 injuries and illnesses per 100
workers, or 38.3 percent, over the 1995-2003 period.
“Total Lost Workday Cases” in Kansas has declined by 1.2 injuries and illnesses per 100
workers, or 28 percent, from 1995-2002 while the national average for the same
incidence rate is down 1.0 injuries and illnesses, or 28 percent, over the period 1995-
2003.
Kansas “Lost Workday Cases with Days Away from Work” has remained fairly steady
over the nine-year period, declining by 1.1 injuries and illnesses per 100 workers. The
national average for days away from work injuries and illnesses declined by the same
amount over this period as well.
“Cases Without Lost Workdays” (“other recordable cases”) in Kansas are down by 2.3
injuries and illnesses per 100 workers from 1995-2002 (relative decline of 42 percent)
and the nation as a whole experienced a similar decline (2.0 injuries and illnesses per 100
FTE).
Table 2-11
BLS Survey of Kansas Private Sector Occupational Injury & Illness
Incidence Rate* 1995-2003
Lost Workday Cases
Total Injuries & Total Lost Workday with Days Away from Cases Without Lost
Illnesses* Cases* Work* Workdays**
National Kansas National Kansas National Kansas National Kansas
Year Rate Rate Rate Rate Rate Rate Rate Rate
1995 8.1 9.7 3.6 4.2 2.5 2.5 4.4 5.5
1996 7.4 8.9 3.4 4.0 2.2 2.2 4.1 4.9
1997 7.1 8.6 3.3 4.0 2.1 2.1 3.8 4.6
1998 6.7 8.5 3.1 3.7 2.0 1.9 3.5 4.8
1999 6.3 7.6 3.0 3.6 1.9 1.9 3.3 4.0
2000 6.1 7.8 3.0 3.3 1.8 1.7 3.2 4.4
2001 5.7 7.3 2.8 3.2 1.7 1.6 2.9 4.0
2002 5.3 6.2 2.8 3.0 1.6 1.4 2.5 3.2
2003 5.0 n/a 2.6 n/a 1.5 n/a 2.4 n/a
Source: Bureau of Labor Statistics, U.S. Department of Labor
*Per 100 FTE Private Sector Workers
** Starting in 2002 this category has been reclassified by BLS as "other recordable cases"
n/a= not available as of December, 2004
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The utilities sector had the highest total injuries and illnesses incidence rate at (9.89
injuries and illnesses per 100 FTE for FY 2003, 9.31 for FY 2004) for the last two years,
followed by the mining (8.10 in FY 2003, 7.25 in FY 2004), and construction industries
(7.40 in FY 2003, 6.5 in FY 2004).
The industrial super sectors with the lowest rates for the total injuries and illnesses
incidence rate for both years were the management of companies and enterprises (0.16 in
FY 2003, 0.44 in FY 2004).
Utilities also reported the highest “no time lost” incidence rate in FY 2003 with 8.48
injuries and illnesses per 100 FTE, while the health care and social assistance industrial
sector had the second highest rate; 6.09 per 100 FTE. In FY 2004, utilities ranked first
once again (7.77) while the manufacturing super sector had the second highest
occurrence of “no time lost” injuries with 4.54.
The mining sector reported the highest incidence rate of “time lost” injuries and illnesses
in both FY 2003, with 2.5 per 100 FTE, and FY 2004 (2.75).
The construction sector reported the second highest rate of “time lost” injuries for FY
2003 was 2.31 injuries and illnesses per 100 FTE and 2.14 in FY 2004.
The data for the educational service (which does not include public school and university
employees) sector are not available for either year and are currently under review by the
division statisticians.
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Table 2-12
Kansas Non-Fatal Occupational Injury & Illness Incidence
Rate* by NAICS Super Sector FY 2003-FY 2004
Total Injuries & No Time Lost Injuries & Time Lost Injuries &
Industrial Super Sector Illnesses Illnesses* Illnesses*
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Table 2-13
Location (County) of Occupational Injuries & Illnesses
by Severity FY 2004
Kansas County No Time Lost Time Lost Fatality Total Inj/Ill
ALLEN 284 58 342
ANDERSON 43 21 64
ATCHISON 326 141 467
BARBER 47 31 78
BARTON 429 222 651
BOURBON 291 110 401
BROWN 189 40 229
BUTLER 673 212 1 886
CHASE 38 1 39
CHAUTAUQUA 30 18 48
CHEROKEE 176 84 260
CHEYENNE 30 12 42
CLARK 47 19 66
CLAY 144 48 192
CLOUD 118 38 156
COFFEY 92 25 117
COMANCHE 23 10 33
COWLEY 582 166 748
CRAWFORD 606 272 878
DECATUR 46 21 67
DICKINSON 299 117 416
DONIPHAN 44 25 69
DOUGLAS 1,510 538 1 2,049
EDWARDS 25 14 39
ELK 30 17 47
ELLIS 505 187 1 693
ELLSWORTH 220 54 274
FINNEY 831 234 2 1,067
FORD 812 186 998
FRANKLIN 391 130 521
GEARY 640 154 794
GOVE 41 23 64
GRAHAM 38 15 53
GRANT 120 34 154
GRAY 49 20 69
GREELEY 34 4 38
GREENWOOD 104 33 137
HAMILTON 56 17 73
HARPER 135 32 167
HARVEY 502 177 679
HASKELL 68 18 86
Source: Kansas Division of Workers Compensation
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Table 2-14
Source Reported in Occupational Injuries & Illnesses by Severity
FY 2004
No Time Time Total
Source Lost Lost Fatal Inj/Ill
AIR PRESSURE 20 4 24
AIRCRAFT 37 3 3 43
ANIMAL PRODUCTS 384 28 412
ANIMALS, INSECTS, ETC, UNS 1,096 132 1,228
BLOOD 194 6 200
BOAT OR SHIP 21 3 24
BODILY MOTION 3,501 772 4,273
BOILERS, PRESSURE VESSELS 2 2
BOTTLES, JUGS, FLASKS, ETC 103 21 124
BOXES, BARRELS, CONTAINERS, PACKAGES 2,926 572 3,498
BUILDINGS & STRUCTURES (WALLS, FENCES) 1,117 196 1,313
CERAMIC ITEMS (BRICK, CHINA, TILE ETC) 35 7 42
CHEMICALS 743 84 827
CLOTHING, APPAREL, SHOES 154 26 180
COAL AND PETROLEUM PRODUCTS 55 14 69
COLD (ATMOSPHERIC, ENVIRONMENTAL) 4 4
CONVEYERS 143 29 172
DRUGS AND MEDICINES 21 2 23
EARTHMOVING & HIWAY CONSTR. MACHINES 150 55 2 207
ELECTRIC APPARATUS (HOUSEHOLD APPLIANCE) 484 67 551
FLAME, FIRE, SMOKE 108 17 125
FLOOR 1,295 237 1,532
FOOD PRODUCTS (COOKING OIL) 348 54 402
FORKLIFTS, STACKERS (POWERED VEHICLES) 166 39 205
FUMES - (GAS, PAINT) 100 22 122
FURNITURE, FIXTURES, FURNISHINGS ETC 2,520 436 2,956
GLASS ITEMS (FIBERGLASS, SEE ALSO 650) 483 46 529
GROUND OUTDOORS 608 165 773
HAND TOOLS, NOT POWERED 1,280 152 1,432
HAND TOOLS, POWERED 713 120 833
HANDTRUCKS,DOLLIES (NON POWERED VEHICLE) 460 108 568
HEAT, ENVIRONMENTAL 104 32 136
HEATING EQUIPMENT (FURNACES, STOVES ETC) 155 11 166
HIGHWAY VEHICLES 69 18 87
HOISTING APPARATUS 104 18 122
ICE, SNOW 540 87 2 629
INFECTIOUS, PARASITIC AGENTS (BACTERIA) 305 20 325
KNIVE OR RAZOR 1,418 125 1,543
LADDERS 448 158 606
LIQUIDS (WATER, LIQUIDS NEC) 444 78 522
MACHINES, UNS 1,130 228 1 1,359
Source: Kansas Division of Workers Compensation
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Table 2-15
Cause of Occupational Injuries & Illnesses by Severity FY 2004
No Time Time Total
Cause of Injuries & Illnesses Lost Lost Fatality Inj/Ill
ABNORMAL AIR PRESSURE - BURN OR SCALD-HEAT OR
COLD EXPOSURE 4 2 6
ABSORPTION, INGESTION, OR INHALATION, NOC 149 162 311
ACID CHEMICALS 155 56 211
ANIMAL OR INSECT 1,002 228 1,230
BROKEN GLASS 338 67 405
BURN OR SCALD--HEAT OR COLD EXPOSURE
MISCELLANEOUS 323 112 435
CALLOUS BLISTER ETC. CAUSED BY REPETITIVE MOTION 7 60 67
CAUGHT BY COLAPSING MATERIALS (SLIDES OF EARTH) -
MAN MADE OR NATURAL 1 4 5
CAUGHT IN OR BETWEEN MISCELLANEOUS 1,016 220 2 1,238
COLLISION WITH A FIXED OBJECT 24 24 48
COLLISION WITH ANOTHER VEHICLE 542 265 14 821
CONTACT WITH ELECTRIC CURRENT 92 25 117
CONTACT WITH HOT OBJECT 190 58 248
CRASH OF AIRPLANE 1 6 7
CUMULATIVE INJURY (NOT OTHERWISE CLASSIFIED) 563 244 807
CUT, PUNCTURE, SCRAPE INJURED BY MISCELLANEOUS 772 353 1,125
CUT, PUNCTURE, SCRAPE, INJURED BY OBJECT BEING
LIFTED OR HANDLED 214 285 499
DUST, GASES, FUMES OR VAPORS 287 58 345
EXPLOSION OR FLARE BACK 18 5 1 24
EXPOSURE TO COLD OBJECTS OR SUBSTANCES 6 6
FALL OR SLIP INJURY MISCELLANEOUS 893 570 1,463
FALL, ONTO OR AGAINST OBJECTS 212 50 2 264
FALL, SLIP OR TRIP INJURY ON STAIRS 388 175 563
FALL, SLIP OR TRIP INTO OPENINGS - SHAFTS,
EXCAVATIONS, FLOOR OPENING 31 24 55
FALL, SLIP, OR TRIP INJURY ON ICE OR SNOW 1,383 560 1,943
FALLING OR FLYING OBJECT 1,544 674 2,218
FIRE OR FLAME 57 26 83
FOREIGN BODY IN EYE 2,104 491 2,595
FROM DIFFERENT LEVEL 663 441 1,104
FROM LIQUID OR GREASE SPILLS 1,136 361 1,497
HAND TOOL OR MACHINE IN USE 79 71 150
HAND TOOL, UTENSIL; NOT POWERED 2,471 494 2,965
HOLDING OR CARRYING 632 161 793
JUMPING 107 53 160
LADDER OR SCAFFOLDING 226 216 442
LIFTING 5,348 1,973 7,321
MACHINE OR MACHINERY - CAUGHT IN, UNDER OR
BETWEEN 301 182 483
MISC OTHER THAN PHYSICAL CAUSE OF INJURY 62 62 1 125
MOTOR VEHICLE 55 46 101
MOTOR VEHICLE MISCELLANEOUS 72 62 1 135
Source: Kansas Division of Workers Compensation
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Table 2-16
Nature Reported in Occupational Injuries & Illnesses by Severity FY
2004
No Time Time Total
Nature Lost Lost Fatal Inj/Ill
ALL OTHER CUMULATIVE INJURIES, NOC 105 144 249
ALL OTHER OCCUPATIONAL DISEASE 15 11 26
ALL OTHER SPECIFIC INJURIES, NOC 3,718 1,132 10 4,860
AMPUTATION 73 69 142
ANGINA PECTORIS (COND. ASSOC. WITH HEART
DISEASE) 3 3 6
ASBESTOSIS 2 2
ASPHYXIATION 2 2 1 5
BRUISE, CONTUSION, CRUSHING 2 2
BURN 1,146 354 1 1,501
CANCER 1 1
CARPAL TUNNEL SYNDROME 427 142 569
CONCUSSION 105 55 160
CONTAGIOUS DISEASE 212 15 227
CONTUSION 4,419 1,746 2 6,167
CRUSHING 278 138 416
DAMAGE TO PROSTHETIC DEVICES - GLASSES 4 4
DERMATITIS 444 101 545
DERMATITIS - CEMENT, RUBBER, POISON IVY 38 3 41
DISLOCATION 186 114 300
DUST DISEASE NOC (ALL OTHER PNEUMOCONIOSIS) 3 3 6
ELECTRIC SHOCK 79 14 93
ELECTRIC SHOCK, ELECTROCUTION 1 1
ENUCLEATION (TO REMOVE, EX: TUMOR, EYE, ETC.) 1 1
FOREIGN BODY 2,154 554 2,708
FRACTURE 1,136 889 2,025
FREEZING 4 3 7
HEARING LOSS (TRAUMATIC ONLY) 60 5 65
HEAT PROSTRATION 99 37 136
HERNIA 226 136 362
INFECTION 156 57 213
INFLAMMATION 1,589 362 1,951
LACERATION 7,284 1,850 9,134
LOSS OF HEARING 31 10 41
MENTAL DISORDER 2 2
MENTAL STRESS 22 6 28
MULTIPLE INJURIES 1 1
MULTIPLE INJURIES (PHYSICAL AND
PSYCHOLOGICAL) 9 6 15
MULTIPLE PHYSICAL INJURIES ONLY 213 84 297
MULTIPLE TYPES OF INJURY 1,136 194 14 1,344
MYOCARDIAL INFARCTION (HEART ATTACK) 7 14 6 27
NO EXPLANATION 5,987 909 9 6,905
NO INJURY OR ILLNESS 119 2 121
Source: Kansas Division of Workers Compensation
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Table 2-17
Body Member Reported in Occupational Injuries &
Illnesses by Severity FY 2004
Body Member No Time Lost Time Lost Fatal Total Inj/Ill
ABDOMEN 5 2 7
ABDOMEN INCLUDING GROIN -
EXCLUDING INJURY TO
INTERNAL ORGANS 533 238 771
ANKLE 1,410 646 2,056
ARM 42 42
ARTIFICIAL APPLIANCE -
BRACES, ETC. 34 2 36
BACK 1 1 2
BODY PARTS, NEC 3 3
BODY SYSTEMS AND MULTIPLE
BODY SYSTEMS 88 78 166
BRAIN 9 24 33
BRAIN (SEIZURE) 1 1
BUTTOCKS - SOFT TISSUE 97 45 142
CHEST 2 2
CHEST (INC:RIBS, STERNUM) 598 272 1 871
DISC 53 64 117
EAR(S) 189 38 227
ELBOW 983 338 1,321
EYE(S) 2,733 704 3,437
FACE 21 21
FACIAL BONES 53 33 86
FINGER(S) 5,450 1,307 6,757
FOOT 1,195 460 1,655
FOREARM 29 29
GREAT TOE 33 29 62
HAND 2,967 838 3,805
HEAD 478 54 3 535
HEART 14 18 5 37
HIP 305 130 435
HIP(S) 5 5
INTERNAL ORGANS 130 45 175
JAW 3 3
KNEE 2,999 1,183 4,182
LARYNX 2 3 5
LEGS 8 1 9
LOW BACK AREA (LUMBAR,
LUMBOSACRAL) 4,429 2,068 6,497
LOWER ARM 1,203 403 1,606
LOWER EXTREMITIES, MULTIPLE 1 1
LOWER LEG 701 311 1 1,013
LUMBAR AND/OR SACRAL
VERTEBRAE (VERTEBRAE NOC
TRUNK) - SPINAL COLUMN BONE 7 16 23
Source: Kansas Division of Workers Compensation
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Table 2-18
Industries (SIC) Reporting Occupational Injuries & Illnesses by
Severity FY 2004
No Time Time Total
Industry (SIC) Lost Lost Fatal Inj/Ill
ABRASIVE PRODUCTS 1 1 2
ACCIDENT AND HEALTH INSURANCE 34 22 56
ACCOUNTING, AUDITING, AND BOOKKEEPING
SERVICES 57 12 69
ADHESIVES AND SEALANTS 1 1
ADJUSTMENT AND COLLECTION SERVICES 17 4 21
ADMINISTRATION OF EDUCATIONAL PROGRAMS 4 4
ADMINISTRATION OF GENERAL ECONOMIC
PROGRAMS 1 1
ADMINISTRATION OF HOUSING PROGRAMS 21 7 28
ADMINISTRATION OF PUBLIC HEALTH PROGRAMS 2 5 7
ADMINISTRATION OF SOCIAL, HUMAN RESOURCE AND
INCOME MAINTENANCE PROGRAMS 11 9 20
ADMINISTRATION OF URBAN PLANNING AND
COMMUNITY AND RURAL DEVELOPMENT 2 2
ADVERTISING AGENCIES 3 3 6
AIR AND GAS COMPRESSORS 4 1 5
AIR AND WATER RESOURCE AND SOLID WASTE
MANAGEMENT 3 1 4
AIR COURIER SERVICES 6 14 20
AIR TRANSPORTATION, NONSCHEDULED 5 7 3 15
AIR TRANSPORTATION, SCHEDULED 17 4 21
AIR-CONDITIONING AND WARM AIR HEATING
EQUIPMENT AND COMMERCIAL AND INDUSTRIAL
REFRIGERATIO 96 5 101
AIRCRAFT 69 376 445
AIRCRAFT ENGINES AND ENGINE PARTS 10 3 13
AIRCRAFT PARTS AND AUXILIARY EQUIPMENT, NEC 201 73 1 275
AIRPORTS, FLYING FIELDS, AND AIRPORT TERMINAL
SERVICES 9 1 10
ALUMINUM EXTRUDED PRODUCTS 2 2
ALUMINUM FOUNDRIES 2 2 4
AMMUNITION, EXCEPT FOR SMALL ARMS 24 1 25
AMUSEMENT AND RECREATION SERVICES, NEC 146 10 156
AMUSEMENT PARKS 6 2 8
ANIMAL AND MARINE FATS AND OILS 7 2 9
ANIMAL SPECIALTY SERVICES, EXCEPT VETERINARY 6 6
ARBORETA AND BOTANICAL OR ZOOLOGICAL
GARDENS 3 3
ARCHITECTURAL AND ORNAMENTAL METAL WORK 11 7 18
ARCHITECTURAL SERVICES 5 2 7
ARMATURE REWINDING SHOPS 2 2 4
ARRANGEMENT OF PASSENGER TRANSPORTATION,
NEC 1 1
ARRANGEMENT OF TRANSPORTATION OF FREIGHT
AND CARGO 39 6 45
ASBESTOS PRODUCTS 1 1
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Table 2-19
Industries (NAICS) Reporting Occupational Injuries & Illnesses by
Severity FY 2004
No Time Time Total
Industry (NAICS) Lost Lost Fatal Inj/Ill
ACCOUNTING, TAX PREPARATION, BOOKKEEPING, AND
PAYROLL SERVICES 1 1
ADMINISTRATION OF CONSERVATION PROGRAMS 1 1 2
ADMINISTRATION OF HOUSING PROGRAMS 3 3 6
ADMINISTRATION OF PUBLIC HEALTH PROGRAMS 6 6
ADVERTISING AGENCIES 9 9
AGRICULTURAL IMPLEMENT MANUFACTURING 1 1
AIR AND GAS COMPRESSOR MANUFACTURING 1 1
AC/HEAT EQUIP. & COMMERCIAL/INDUSTRIAL
REFRIGERATION EQUIP. MANUFACTURING 10 4 14
AIRCRAFT ENGINE AND ENGINE PARTS
MANUFACTURING (PT) 288 87 375
AIRPORT OPERATIONS 2 1 3
ALL OTHER CONSUMER GOODS RENTAL 4 4
ALL OTHER LEATHER GOOD MANUFACTURING (PT) 9 5 14
ALL OTHER AMUSEMENT AND RECREATION INDUSTRIES 4 4
ALL OTHER BASIC ORGANIC CHEMICAL
MANUFACTURING (PT) 4 4
ALL OTHER BUSINESS SUPPORT SERVICES 2 2
ALL OTHER CONVERTED PAPER PRODUCT
MANUFACTURING (PT) 12 1 13
ALL OTHER GENERAL MERCHANDISE STORES 1 1 2
ALL OTHER HEALTH AND PERSONAL CARE STORES (PT) 2 2
ALL OTHER HOME FURNISHINGS STORES (PT) 4 1 5
ALL OTHER INSURANCE RELATED ACTIVITIES 2 2
ALL OTHER MISCELLANEOUS CHEMICAL AND
PREPARATION MANUFACTURING (PT) 5 2 7
ALL OTHER MISCELLANEOUS CROP FARMING (PT) 9 4 13
ALL OTHER MISCELLANEOUS FABRICATED METAL
PRODUCT MANUFACTURING (PT) 2 2
ALL OTHER MISCELLANEOUS FOOD MANUFACTURING
(PT) 1 3 4
ALL OTHER MISCELLANEOUS GENERAL PURPOSE
MACHINERY MANUFACTURING (PT) 4 4
ALL OTHER MISCELLANEOUS NONMETALLIC MINERAL
PRODUCT MANUFACTURING (PT) 1 2 3
ALL OTHER MISCELLANEOUS STORE RETAILERS
(EXCEPT TOBACCO STORES) (PT) 1 1
ALL OTHER MISCELLANEOUS WOOD PRODUCT
MANUFACTURING (PT) 1 1
ALL OTHER MOTOR VEHICLE DEALERS 9 2 11
ALL OTHER MOTOR VEHICLE PART MANUFACTURING
(PT) 17 9 26
ALL OTHER NONDEPOSITORY CREDIT INTERMEDIATION 3 3
ALL OTHER NONRESIDENTIAL SPECIALTY TRADE
CONTRACTORS 18 6 24
ALL OTHER OUTPATIENT CARE FACILITIES 1 1
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Section 3
Workers Compensation Claims Statistics
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Kansas Division of Workers Compensation Annual Statistical Report 2004
Table 3-1
Table 3-2
Workers Compensation Fund
Expenditures Analysis
FY 2004 % of Total FY 2003 % of Total FY 2002 % of Total
Disability Compensation $1,051,122 28.76% $1,414,800 34.82% $1,743,881 38.27%
Work Assessment $2,443 0.07% $2,060 0.05% $2,631 0.06%
Medical $925,650 25.33% $777,662 19.14% $1,272,118 27.91%
Reimbursement to Insurance
Companies [K.S.A. 44-569(a)
& K.S.A.44-569]; lump sum
and medical may be included $1,031,498 28.23% $1,233,958 30.37% $876,891 19.24%
Attorney Fees $351,529 9.62% $303,013 7.46% $285,564 6.27%
Court Costs, Deposition,
Medical Reports, etc $34,445 0.94% $40,564 1.00% $51,883 1.14%
Other Operating Expense $257,570 7.05% $291,147 7.17% $324,308 7.12%
Total Expenditures $3,654,258 100.00% $4,063,204 100.00% $4,557,276 100.00%
Source: Kansas Insurance Department
1
K.S.A. 44-532a.
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Kansas Division of Workers Compensation Annual Statistical Report 2004
Table 3-3
Workers Compensation Fund
Receipts Analysis
% of % of % of
FY 2004 Total FY 2003 Total FY 2002 Total
Transfer to State General Fund ($76,894.00) -0.80% ($4,000,915) 41.01% ($7,000,000) 40.29%
2
The totals in Table 3-4 do not include self-insured employers.
3
Cecili Thompson Williams, Virginia P. Reno, and John F. Burton Jr., Workers Compensation: Benefits, Coverage,
and Costs, 2002 (Washington D.C.: National Academy of Social Insurance, 2003); 37-39.
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Kansas Division of Workers Compensation Annual Statistical Report 2004
Table 3-4
Workers Compensation Insurance Experience
LOSSES
LOSSES INCURRED
DIRECT DIRECT DIRECT DIRECT PAID TO TO
PREMIUMS PREMIUMS LOSSES LOSSES PREMIUMS PREMIUMS
YEAR WRITTEN EARNED PAID INCURRED WRITTEN EARNED
1982 $154,944,245 $152,315,135 $88,345,714 $107,979,341 57 70.9
1983 $147,137,981 $148,669,330 $96,289,968 $115,282,150 65.4 77.5
1984 $141,097,428 $140,223,325 $106,701,375 $125,520,390 75.6 89.5
1985 $172,985,620 $170,955,138 $120,755,675 $147,438,366 69.8 86.2
1986 $208,167,277 $202,033,619 $134,554,116 $170,153,475 64.6 84.2
1987 $223,674,161 $222,846,661 $147,885,631 $195,885,084 66.1 87.9
1988 $257,039,527 $259,548,305 $164,553,813 $208,332,654 64 80.3
1989 $264,102,264 $263,386,009 $184,857,801 $239,142,874 70 90.8
1990 $291,804,714 $293,048,038 $222,309,953 $265,726,660 76.2 90.7
1991 $341,012,872 $337,125,586 $243,751,957 $321,497,577 71.5 95.4
1992 $366,672,022 $363,578,560 $236,878,948 $293,894,584 64.6 80.8
1993 $367,030,245 $365,646,558 $220,091,021 $231,228,324 60 63.2
1994 $338,173,750 $312,116,539 $185,502,395 $192,914,048 54.9 61.8
1995 $312,745,351 $322,205,785 $159,776,412 $139,528,898 51.1 43.3
1996 $274,014,862 $282,897,458 $149,616,189 $130,595,593 54.6 46.2
1997 $261,121,536 $261,895,503 $145,248,549 $134,603,154 55.6 51.6
1998 $250,588,819 $261,594,835 $156,594,835 $126,164,370 62.6 48.2
1999 $251,341,523 $252,545,287 $170,144,109 $179,376,781 67.7 71
2000 $271,480,320 $247,235,161 $170,366,708 $159,226,348 62.8 64.4
2001 $291,575,463 $269,386,691 $190,426,537 $237,335,832 65.31 88.1
2002 $328,963,003 $307,451,748 $180,253,738 $177,083,631 54.79 57.6
2003 $341,421,177 $324,780,102 $173,028,718 $205,767,268 50.68 63.36
Source: Kansas Insurance Department
K.S.A. 44-557a(c) originally mandated that the Director of Workers Compensation “conduct
studies of open and closed claims under the workers compensation act” and seek advice in order
to “make valid statistical conclusions as to the distributions of costs of workers compensation
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Kansas Division of Workers Compensation Annual Statistical Report 2004
benefits.” The expectation of the division’s Open and Closed Claims Study was that the data
collected will provide a foundation upon which to construct meaningful statistical conclusions
about the costs and temporal characteristics associated with workers compensation claims in
Kansas and identify trends in these claims characteristics over time. Due to the dynamic and
continually evolving nature of medical and indemnity payments for claims not yet closed (open
claims), no meaningful statistics on costs (including daily payments) could be reported, and in
2003 the Legislature altered the statute to no longer obligate the division to collect data on and
report for claims still open.
The CCS study is repeated on an annual basis using the first completed survey study as a
baseline for comparison of successive samples. The intent of this statutory mandate is that the
division should provide the legislature with information that it can use in deciding whether
changes in the provisions of the Workers Compensation Act are needed and, if so, to help
formulate policy responses to identified problems with the program as presently administered.
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Kansas Division of Workers Compensation Annual Statistical Report 2004
It took an average of 23 days for an insurer to be notified following an accident, with half
of the sample taking six days or less for notification. Insurers took an average of 102 days
from the date disability began to make the first payment to the claimant (it took only 18
days for half of all claims). See Table 3-5 below.
Table 3-5
2004 Closed Claims
Time Intervals*
Time Taken for
Time Taken to Insurer to Get First
Claim Duration Notify Insurer Payment Out Time Off Work
Mean 580 23 102 306
Median 432 7 18 59
Count 1,734 2,780 1,734 1,649
Max 4,742 1,196 4,067 74,423
Min 16 0 1 1
Source: Kansas Division of Workers Compensation
*All time intervals listed are in days.
Nearly 31 percent of the injured workers in the sample had secured the services of an
attorney to handle their claim. The average indemnity costs for claims involving an
attorney ($20,012) were $13,485 greater, on average, than claims without an attorney
($6,527). See Table 3-7.
Mean total medical costs for claims involving an attorney totaled $19,120. For claims not
involving attorneys mean total medical costs were $7,849. Mean lump sum settlements
for claims involving attorneys ($12,082) were far greater than for claims without
attorneys ($3,198). See Table 3-7.
95
Kansas Division of Workers Compensation Annual Statistical Report 2004
Table 3-6
2004 Closed Claims
Percentage of Impairment
Bracket Count
1-9% 728
10-19% 349
20-29% 81
30-39% 29
40-49% 16
50-59% 11
60-69% 5
70-79% 1
80-89% 2
90-99% 2
100% 3
Total 1,227
Source: Kansas Division of Workers Compensation
Table 3-7
2004 Closed Claims
Attorney Involvement with Claim
Average Average Average
Count Indemnity Medical Lump Sum
Claimant Attorney Involved 873 $20,012 $19,120 $12,082
No Claimant Attorney 1,907 $6,527 $7,849 $3,198
All Cases 2,780 $10,761 $11,388 $5,987
Source: Kansas Division of Workers Compensation
Mean employer legal expenses, for the 1,058 claims that had these expenses reported,
totaled $2,397, while the mean claimant legal expense was $9,012 for the 59 cases that
itemized expenses. The respective median costs for employer and claimant legal expenses
associated with a claim were $744 and $2,462. See Table 3-8.
96
Kansas Division of Workers Compensation Annual Statistical Report 2004
Table 3-8
2004 Closed Claims
Legal Expenses Associated with Claim
Employer's Legal Expenses Claimant's Legal Expenses
Mean $2,397 $9,012
Median $744 $2,462
Count 1,058 59
Source: Kansas Division of Workers Compensation
Table 3-9
2004 Closed Claims
Average Wage & Indemnity by Employer Payroll
Average of Count of
Average Weekly Average of Total Return To Total Cases in
Wage Indemnity Work Each Category
$0 $483 $5,477 4 497
$1-100,000 $3,551 $45,040 21 39
$100,001-$1,000,000 $451 $10,976 150 274
$1,000,001-$10,000,000 $569 $12,780 414 529
Over $10,000,000 $658 $11,224 742 859
Sample Total $607 $10,761 1794 2780
Source: Kansas Division of Workers Compensation
The following highlights refer to the 2004 Closed Claim Study charts that follow below (see
Figures 3-1 through 3-16).
Injured workers in the 30 to 39-year-old age stratum had the greatest number of claims
(766) in the sample, while claimants in the 40 to 49-year-old age stratum were a close
second with 759. See Figure 3-1.
Injured workers in the 0 to19-year-old age stratum reported the highest mean indemnity
costs ($20,149), with those in the 60 to 69-year-old age stratum a close second at
$18,717. See Figure 3-2.
Male claimants reported a slightly higher mean indemnity costs than female claimants
($10,879 for male claimants and $10,038 for female claimants) and higher mean medical
costs ($11,281 for males and $10,140 for females). See Figure 3-3.
Lifting was the most frequent cause of injury resulting in a claim for this year’s study.
The mean indemnity cost for lifting injuries was $10,108 and mean medical costs were
$10,670. However, of the top 10 most frequent causes of injury, those classified as
repetitive motion reported the highest average indemnity costs ($20,427) and medical
costs ($22,403). See Figures 3-4 and 3-5.
Forty percent of the closed claims sample reported strains as the nature of the worker’s
injury. The second most common nature of injury was fractures, followed by sprains.
97
Kansas Division of Workers Compensation Annual Statistical Report 2004
See Figure 3-6. However, mean indemnity costs for carpal tunnel syndrome ($14,499)
were the highest indemnity costs by nature of injury. The highest average medical cost by
nature of injury ($48,395) was associated with multiple physical injuries. See Figure 3-7.
The most frequently injured major body region (which consists of all the body parts
condensed down into much broader categories) was the upper extremities (arms, wrists,
hands, elbow, etc.). Lower extremities were second, with the back region the next most
frequently reported injured body region. However, the highest mean indemnity costs
were with claims involving multiple body parts ($14,688), and the highest mean medical
costs for major body region were with claims involving the head ($17,765 mean
medical). See Figures 3-8 and 3-9.
The knee was the most frequently injured body part resulting in scheduled indemnity
benefits but wrist claims had the highest mean indemnity costs ($16,937) and highest
mean medical costs ($19,425). See Figures 3-10 and 3-11.
Injuries involving multiple body parts were the most often injured body part resulting in
unscheduled indemnity benefit, with the lower back area second. However, hip injuries
had the highest mean indemnity ($15,744) and multiple trunk injuries reported the
highest mean medical costs ($28,064) for all unscheduled body part claims. See Figures
3-12 and 3-13.
Temporary total disability (TTD) claims had a mean of $5,025 for indemnity costs.
However, death cases had the highest mean indemnity costs, with $28,514 for seven
cases. See Figures 3-14 and 3-15.
Carpal tunnel syndrome injuries had mean indemnity costs of $14,499 and mean total
medical costs of $22,174. See Figure 3-16.
98
Kansas Division of Workers Compensation Annual Statistical Report 2004
Figure 3-1
Distribution of Claimants by Age
CCS 2004
0-19 60
20-29 484
30-39 766
Age Bracket
40-49 759
50-59 527
60-69 151
70-79 23
80- 10
Figure 3-2
Average Claim Costs by Age of Claimant
CCS 2004
0-19 $20,149
$5,232
20-29 $9,655
$6,968
30-39 $11,784
$11,433
Age Bracket
40-49 $11,968
$11,407
50-59 $9,281
$11,060
60-69 $16,686
$18,717
70-79 $7,055
$5,044
80- $9,332
$4,412
0 5,000 10,000 15,000 20,000 25,000
Claim Amount ($)
99
Kansas Division of Workers Compensation Annual Statistical Report 2004
Figure 3-3
Average Claim Cost by Gender of Claimant
CCS 2004
$63,786
Unknown
$26,839
Gender
$10,140
Female
$10,038
$11,281
Male
$10,879
Figure 3-4
Most Frequent Causes of Injury
CCS 2004
Lifting 367
Cumulative, NOC 179
Repetitive Motion 168
Pushing or Pulling 153
From Different Level (Elevation) 146
Cause
100
Kansas Division of Workers Compensation Annual Statistical Report 2004
Figure 3-5
Average Claim Costs for the Most Frequent Causes of Injury
CCS 2004
Lifting $10,670
$10,108
Cumulative, NOC $5,225
$10,976
Repetitive Motion $22,403
$20,427
Pushing or Pulling $8,140
$8,895
From Different Level (Elevation) $13,764
$11,732
Cause
Figure 3-6
Most Frequently Reported Nature of Claimant Injury
CCS 2004
Strain 1,131
Fracture 287
Sprain 232
Contusion 200
Laceration 164
Nature
Inflammation 80
Hernia 64
101
Kansas Division of Workers Compensation Annual Statistical Report 2004
Figure 3-7
Average Claim Costs for Most Frequently Reported Natures
of Injury
CCS 2004
Strain $7,966
$10,047
Fracture $13,627
$12,738
Sprain $9,483
$10,670
Contusion $9,453
$7,880
$8,714
Nature
Laceration $5,630
All other Specific Injuries, NOC $10,673
$12,073
Inflammation $8,214
$9,754
Carpal Tunnel Syndrome $22,174
$14,499
Hernia $9,575
$3,424
Multiple Physical Injuries Only $48,395
$13,177
Figure 3-8
Most Frequent Major Body Region Injured by Claimant
CCS 2004
Back 429
Body Region
Trunk 160
Head 89
Neck 77
102
Kansas Division of Workers Compensation Annual Statistical Report 2004
Figure 3-9
Average Claim Costs by Major Body Region Injured by
Claimant
CCS 2004
Upper Extremities $11,039
$10,740
Back $9,505
Body Region
$13,352
Trunk $13,429
$7,338
Head $17,765
$7,037
Neck $10,012
$12,793
$0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 $20,000
Figure 3-10
Most Frequent Scheduled Body Part Claims
CCS 2004
Knee 302
Shoulder(s) 218
Finger(s) 134
Wrist 117
Body Part
Hand 103
Ankle 93
Upper Arm 86
Foot 73
Elbow 67
Lower Leg 56
103
Kansas Division of Workers Compensation Annual Statistical Report 2004
Figure 3-11
Average Claim Costs for Most Frequent Scheduled Body
Part Claims
CCS 2004
Knee $14,237
$9,094
Shoulder(s) $15,833
$15,818
Finger(s) $5,754
$3,738
Wrist $19,425
$16,937
Body Part
Hand $7,722
$7,938
Ankle $5,225
$5,379
Foot $8,364
$8,766
Elbow $7,884
$6,677
Average Indemnity
Figure 3-12
Most Frequent Unscheduled Body Part Claims
CCS 2004
Hip 37
Multiple Trunk 36
Multiple Ne ck Injury 32
Ear(s) 31
C he st 30
Uppe r Back Are a 29
104
Kansas Division of Workers Compensation Annual Statistical Report 2004
Figure 3-13
Average Claim Costs for Most Frequent Unscheduled Body
Parts CCS 2004
Multiple Body Parts (including Body $10,590
Systems & Body Parts) $12,128
Abdomen $7,637
$2,621
Body Part
Hip $20,754
$15,744
Ear(s) $1,605
$9,396
Chest $14,625
$12,584
$0
Average Medical $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000
Figure 3-14
Most Frequent Benefit Type of Claimant
CCS 2004
Temporary Partial 148
Indemnity Portion of
2
Expenses (1)
Unscheduled Permanent
525
Partial
Scheduled Permanent Partial
426
Death 7
105
Kansas Division of Workers Compensation Annual Statistical Report 2004
Figure 3-15
Average Indemnity Costs by Benefit Type
CCS 2004
Death $28,514
Figure 3-16
Claim Costs for Carpal Tunnel and All Other Cumulative
Injuries
CCS 2004
$22,174
$22,326
Average Hospital Cost* $12,042
106
Kansas Division of Workers Compensation Annual Statistical Report 2004
K.S.A. 44-557a(c) mandates the Director of Workers Compensation “to conduct studies of open
and closed claims under the workers compensation act” and to seek advice in order to “make
valid statistical conclusions as to the distributions of costs of workers compensation benefits.”
The expectation of the division’s Closed Claims Study is that the data collected will provide a
foundation upon which to construct meaningful statistical conclusions about the costs and
temporal characteristics associated with workers compensation claims in Kansas and help
identify trends in these claims characteristics over time. The CCS study is repeated on an annual
basis using the first completed survey study as a baseline for comparison of successive samples.
2004 marks the sixth year that the division has reported its findings.
Univariate Statistics
Univariate statistics are important quantitative tools for describing the statistical distribution of
workers compensation data. The term “univariate” refers to the presentation or analysis of one
variable at a time and usually involves such descriptive statistics as frequency distributions,
measures of central tendency (e.g., mean and median) and dispersion (e.g., variance and standard
deviation). Important variables associated with workers compensation claims include the
following:
These eight workers compensation variables will be analyzed in this section of the report. Some
of the definitions for these variables differ slightly than those reported above. See Tables 3-11
through 3-16.
It is extremely important to note that after six years of analyzing claims data from the
sample study, the division has concluded that the distribution of medical and indemnity
claim costs in Kansas are not normally distributed and, therefore, the median is a more
appropriate measure of central tendency for summarizing the closed claims costs data
than the mean (“average”) since the median value is relatively unaffected by high cost
4
In Table 3-6 claim duration is calculated from date of claim closing back to the date of disability. For purposes
here claim duration is calculated as back to the date of injury in order to reflect the full duration of a claim.
107
Kansas Division of Workers Compensation Annual Statistical Report 2004
outliers. A word of caution: none of these numbers has been controlled for inflation (see
the division web site at www.dol.ks.gov for 1998-2002 costs controlled for inflation).
Median5 costs for all cost variables were substantially lower than the mean for all six
years of the CCS study. Median total indemnity costs for 2004 were $4,901, for the 2003
CCS study they were $3,695, for the 2002 CCS study they were $2,573, for the 2001
CCS they were $2,296, an increase of 8.5 percent from 2000 ($2,115), but a decrease of
21.5 percent from 1999 ($2,926). For the period 1999-2003, median total indemnity costs
increased 40 percent. Again, the relative increase is not controlled for inflation.
Median total medical costs have risen each year that the CCS study has collected workers
compensation claims data, a relative increase of 106 percent from 1999-2004. Median
medical costs in 2004 were $5,033; in 2003, median total medical costs were $4,285.50;
median total medical costs in 2002 were $4,108.50; and in 2001, median costs were
$3,834.
From 1999 to 2004, mean6 total indemnity increased by $4,701.14 or 59 percent. The
confidence interval of the parameter mean for 2004 is $11,286.71 - $13,987.75. Total
indemnity in the 2003 study was $9,288.44 +/- $412.84, or between $8,875.60 and
$9,701.28. For the 2002 study, mean indemnity was $7,442.08 +/- $307.06, or between
$7,135.02 and $7,749.14. For 2001, mean indemnity was $6,530.81 +/- $228.65, or
somewhere between $6,302.16 and $6,759.46. For the 2000 CCS sample, it was
$7,235.45 +/- $264.76 or between $6,970.69 and $7,500.20 and for the 1999 CCS sample
it was $7936.09 +/- $306.92 or between $7,629.17 and $8,243.01.
Mean total medical costs, however, have risen 98.4 percent ($5,758.31) over the past six
years. Reported mean total medical costs for the 2004 sample were $11,611.90 +/-
$1,026.30. For the 2003 CCS sample, mean medical costs were $8,401.91 +/- $405.68 or
between $7,996.23 and $8,807.59. For the 2002 CCS sample, mean total medical costs
were $7,879.78 +/- $332.67 or between $7,547.11 and $8,212.45. For 2001, mean costs
were $7,108.58 +/- $232.69 (between $6,857.89 and $7,341.27); for 2000, mean medical
costs were $6,872.88 +/- $280.39 (between $6,592.49 and $7,063.27); and for 1999
$5,853.59 +/- $277.05 (between $5,576.54 and $6,130.64).
Univariate statistics associated with total physician, total hospital and total other medical
costs for 1999-2004 are listed in Tables 3-11 through 3-16.
As with median claim costs, the median numbers of days for the temporal characteristics
associated with the claim are substantially lower than the mean. Median claim duration
for the 2004 sample was 489 days. For the 2003 sample it was 384.5, for 2002 it was
324.5, for 2001 it was 332 days, for 2000 the median number of days was 329 and for
1999 it was 314 days. For time away from work, the median number of days for 2004
was 35 days. For the 2003, 2002, 2001 and 2000 CCS it was 31 days, 47 days, 32 days
and 29 days, respectively. Median medical recovery time was higher than time away
from work but lower than claim duration for all six years of the study (246 days in 2004,
163.5 days in 2003, 241.5 days in 2002, 174 days in 2001, 151 days in 2000 and 183 days
in 1999).
5
The median is simply the midpoint value (50th percentile) of the distribution, half of all values are above it and half
are below it. The median is “resistant” to outliers, unlike the mean.
6
The mean is the arithmetic average of a set of numbers.
108
Kansas Division of Workers Compensation Annual Statistical Report 2004
The mean claim duration for all claims in 2004 was 619.8 +/- 11 days. The 2003 CCS
sample was 551.97 +/- 14.61days. For the 2002 CCS sample, it was 500.49 +/- 13.04
days. For the 2001 CCS sample, mean claim duration was 449.83 +/- 9.19 days.
Mean time away from work for the 2004 CCS sample was 272.2 days, +/- 87.26 days.
The 2003 mean time away from work, calculated as the time from disability to the date
the claimant returned to work, was 2,385.44 +/- 291.8 days. In 2002, mean time away
from work was 124.77 +/- 6.9 days, for 2001 mean time away from work was 76.42 +/-
3.27 days, and it was 89.93 +/- 4.28 days in 2000. No data was available for the 1999
CCS sample.
Mean medical recovery time for 2004 was 367.9 days, +/- 8.43 days. For 2003 it was
323.14 +/- 13.53, for 2002 it was 391.55 +/- 11.53 days, for 2001 it was 260.47 +/- 6.47
days, for the 2000 CCS sample it was 256.46 +/- 6.52 days, and in 1999 mean recovery
time was 279.04 +/- 6.77 days.
Statistical measures of dispersion, such as the standard deviation or skewness, help explain how
the outliers “inflate” the mean for both claim costs and characteristics variables. All eight
variables show a positive skewness value (greater than zero) for all six years of the CCS study.
For all years, the sample distributions for claim costs and temporal variables have been
positively skewed, or right skewed. Compared to a normally distributed variable, in the shape of
a bell curve, the distribution of claim costs (for both indemnity and all medical variables) are
skewed to the right with most of the claims bunched near the left wall of the histogram while a
relatively few claims extend the histogram out to the right and give it a long tail. Hence, we use
the term right skewed or positively skewed because the values in the tail extend the distribution
out into positive, not negative, values. A quantitative assessment of the skewness of a
distribution can be calculated (see Tables 3-11 through 3-16), but it must be assessed in
conjunction with another measure, the kurtosis or the tendency of the data to be distributed
toward the ends or tails of the spread.
All eight variables show a positive skewness value (greater than zero) for all six years of the
CCS study. For a normally distributed variable, the kurtosis statistic would be close to zero.7 If
the kurtosis measure is less than zero, then the distribution is referred to as “light tailed” and if
greater than zero it is described as “heavy tailed.” Since the distributions of all the variables
under study are asymmetrical (values cannot be less than zero), the kurtosis measures signals that
there are a substantial number of outliers (high cost and large number of days) in the tails of the
distribution for the variables under study (the kurtosis is much higher for some of the medical
cost variables).
7
Actually, the kurtosis of the normal distribution is three but SAS software subtracts three from the calculation so
that the reference point becomes zero, a more intuitively appealing number in their estimation.
109
Kansas Division of Workers Compensation Annual Statistical Report 2004
Figure 3-17
Average (Median) Total Indemnity & Medical
Claim Costs in Kansas 1999-2004
$6,000
$5,033.00
$5,000
$4,901.00
$4,000
$4,285.50
$4,108.50
$3,834.00 $3,695.00
$3,000 $3,342.00
$2,926.00
$2,000 $2,447.00 $2,573.00
$2,296.00
$2,115.00
$1,000
$0
1999 2000 2001 2002 2003 2004
110
Kansas Division of Workers Compensation Annual Statistical Report 2004
Figure 3-18
Average (Median) Temporal Characteristics of
Claims in Kansas 1999-2004
600
500 489
400 384.5
314 329 332 324.5
300
241.5 246
200 183 174 163.5
151
100
29 32 47 31 35
0
1999 2000 2001 2002 2003 2004
Claim Duration (days) Time Away from Work (days) Medical Recovery (days)
Table 3-10
2004 CCS: Workers Compensation Claims in Kansas
Univariate Statistics
Coefficient
Standard Standard of
Mean Error Median Deviation Skewness Kurtosis Variation n
Total Indemnity (dollars) 12,637.23 1,350.52 4,901 71,207.00 32.74 1295.30 563.47 2,780
Total Medical (dollars) 11,611.90 1,026.30 5,033 54,102.50 21.19 513.33 465.92 2,779
Total Physician Costs (dollars) 3,216.60 216.03 1,682 11,390.20 25.28 764.21 354.10 2,780
Total Hospital Costs (dollars) 5,743.70 681.78 1,312 35,947.50 21.44 511.40 625.86 2,780
Total Other Medical (dollars) 2,427.70 317.00 666 16,714.23 45.37 2,254.42 688.47 2,780
Claim Duration (days) 619.80 11.01 489 526.13 2.33 8.92 84.88 2,283
Time Away from Work (days) 272.20 87.26 35 3,482.18 19.95 399.44 1,279.28 1,593
Medical Recovery (days) 367.90 8.43 246 402.8 3.38 22.74 109.48 2,283
Source: Kansas Division of Workers Compensation
*Claims that closed in 2003 with paid indemnity & medical.
111
Kansas Division of Workers Compensation Annual Statistical Report 2004
Table 3-11
2003 CCS: Workers Compensation Claims in Kansas
Univariate Statistics
Coefficient
Standard Standard of
Mean Error Median Deviation Skewness Kurtosis Variation n
Total Indemnity (dollars) 9,288.44 412.84 3,695.00 16,169.58 4.37 29.04 174.08 1,534
Total Medical (dollars) 8,401.91 405.68 4,285.50 12,902.78 8.84 126.75 189.11 1,534
Total Physician Costs (dollars) 2,011.69 98.43 585.50 3,855.20 5.70 57.57 191.64 1,534
Total Hospital Costs (dollars) 2,517.56 175.59 103.00 6,877.38 9.52 139.63 273.18 1,534
Total Other Medical (dollars) 1,443.76 107.61 200.00 4,214.82 16.67 440.03 291.93 1,534
Claim Duration (days) 551.97 14.61 384.50 572.27 2.67 9.31 103.68 1,534
Time Away from Work (days) 2,385.44 291.80 31.00 2,385.45 3.64 11.27 374.25 936
Medical Recovery (days) 323.14 13.53 163.50 439.40 2.82 10.10 135.98 1,054
Source: Kansas Division of Workers Compensation
*Claims that closed in 2002 with paid indemnity & medical.
Table 3-12
2002 CCS: Workers Compensation Claims* in Kansas
Univariate Statistics
Coefficient
Standard Standard of
Mean Error Median Deviation Skewness Kurtosis Variation n
Total Indemnity (dollars) 7,442.08 307.06 2573.00 12,863.64 3.82 18.93 172.85 1,755
Total Medical (dollars) 7,879.78 332.67 4,108.50 14,393.53 9.26 144.12 182.66 1,872
Total Physician Costs (dollars) 2,072.15 77.65 1202.00 2,828.64 5.28 53.14 136.51 1,327
Total Hospital Costs (dollars) 3,902.37 189.37 2,327.50 5,897.96 5.12 42.04 151.14 970
Total Other Medical (dollars) 2,120.92 260.95 874.00 9,020.72 30.02 985.84 425.32 1,195
Claim Duration (days) 500.49 13.04 324.50 564.40 3.00 11.11 112.77 1,872
Time Away from Work (days) 124.77 6.90 47.00 243.90 6.28 57.74 195.52 1,249
Medical Recovery (days) 391.55 11.53 241.50 499.03 3.44 15.47 127.45 1,872
Source: Kansas Division of Workers Compensation
*Claims that closed in 2001 with paid indemnity & medical.
112
Kansas Division of Workers Compensation Annual Statistical Report 2004
Table 3-13
2001 CCS: Workers Compensation Claims* in Kansas
Univariate Statistics
Coefficient
Standard Standard of
Mean Error Median Deviation Skewness Kurtosis Variation n
Total Indemnity (dollars) 6,530.81 228.65 2296.0 10,746.36 3.61 17.84 164.55 2,209
Total Medical (dollars) 7,108.58 232.69 3834.0 10,936.24 5.98 66.35 153.85 2,209
Total Physician Costs (dollars) 2,282.25 66.82 1,351.5 3,077.74 4.14 29.34 134.86 2,122
Total Hospital Costs (dollars) 4,314.73 187.53 2300.0 7,594.41 8.94 140.10 176.01 1,640
Total Other Medical (dollars) 2,136.52 103.46 683.0 4,353.92 7.59 105.57 203.79 1,771
Claim Duration (days) 449.83 9.19 332.0 431.81 2.61 9.65 95.99 2,209
Time Away from Work (days) 76.42 3.27 32.0 121.46 3.38 14.36 158.94 1,378
Medical Recovery (days) 260.47 6.47 174.0 303.92 3.13 15.32 116.68 2,206
Source: Kansas Division of Workers Compensation
*Claims that closed in 2000 with paid indemnity & medical.
Table 3-14
2000 CCS: Workers Compensation Claims* in Kansas
Univariate Statistics
Coefficient
Standard Standard of
Mean Error Median Deviation Skewness Kurtosis Variation n
Total Indemnity (dollars) 7,235.45 264.76 2,115.00 13,118.47 4.19 24.68 181.31 2,455
Total Medical (dollars) 6,872.88 280.39 3.342.00 13,892.52 11.06 200.06 202.14 2,455
Total Physician Costs (dollars) 2,770.01 131.20 1,369.00 6,409.96 23.60 833.40 231.41 2,387
Total Hospital Costs (dollars) 4215.40 200.59 2,051.50 8,231.63 10.06 175.24 195.28 1,684
Total Other Medical (dollars) 1,603.54 93.34 557.00 4,144.81 10.76 175.05 258.48 1,972
Claim Duration (days) 442.86 8.32 329.00 412.25 2.28 8.92 93.09 2,455
Time Away from Work (days) 89.93 4.28 29.00 166.78 4.40 26.40 185.44 1,519
Medical Recovery (days) 256.46 6.52 151.00 323.20 3.38 17.74 126.03 2,455
Source: Kansas Division of Workers Compensation
*Claims that closed in 1999 with paid indemnity & medical.
113
Kansas Division of Workers Compensation Annual Statistical Report 2004
Table 3-15
1999 CCS: Workers Compensation Claims* in Kansas
Univariate Statistics
Coefficient
Standard Standard of
Mean Error Median Deviation Skewness Kurtosis Variation n
Total Indemnity (dollars) 7,936.09 306.92 2,926.0 14,294.14 4.85 36.36 180.12 2,169
Total Medical (dollars) 5,853.59 277.05 2,447.0 12,902.78 16.90 489.68 220.43 2,169
Total Physician Costs (dollars) 2,039.81 68.55 1,042.0 3,128.68 4.31 28.36 153.38 2,083
Total Hospital Costs (dollars) 3,612.86 171.30 1,655.0 6,538.48 6.41 68.60 180.98 1,457
Total Other Medical (dollars) 1,777.74 221.00 517.5 9,371.18 35.10 1,383.89 527.14 1,798
Claim Duration (days) 423.46 8.85 314.0 412.31 2.76 11.30 97.37 2,169
Time Away from Work (days) n/a n/a n/a n/a n/a n/a n/a n/a
Medical Recovery (days) 279.04 6.77 183.0 315.25 3.07 15.40 112.97 2,169
Source: Kansas Division of Workers Compensation
*Claims that closed in 1998 with paid indemnity & medical.
Median total claim costs per sample year are reported in Table 3-16. From calendar years 1998
to 2003 median total claim costs (the sum of total indemnity and medical) increased 65 percent,
not controlling for inflation. Median total claim costs for 2003 were $11,242.50. The indemnity
percentage of the total claim costs per sample has ranged between 47 percent in 2001 to 52.5
percent in both 1998 and 2002. The medical percentage of the total claim costs per sample has
ranged between 47 percent in 1998 and 53 percent in 2001.
Table 3-16
CCS Total Costs for Claims 1999-2004
Median Total Percent Percent
Sample Year Costs* Indemnity Medical
1998 $6,809.00 52.58% 47.42%
1999 $6,271.00 51.28% 48.72%
2000 $7,064.00 47.88% 52.12%
2001 $7,398.50 46.96% 53.04%
2002 $9,147.50 52.51% 47.49%
2003 $11,242.50 52.12% 47.88%
Source: Kansas Division of Workers Compensation
*Sum of total incurred indemnity & medical per claim
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Section 4
Workers Compensation Fraud and Abuse
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The Workers Compensation Fraud and Abuse Investigation unit was established in 1994. The
unit is staffed with three investigators and an Administrative Specialist, with an Assistant
Attorney General supervising the unit. The unit’s responsibilities include identifying potential
fraud and abuse in the workers compensation arena by investigating allegations, referred to or
developed by the unit, of violations of the workers compensation regulations and laws as stated
in K.S.A. 44-5,120 and K.S.A. 44-5,125. Provable violations may be taken before a hearing
officer in a civil action or may be presented to local county or district attorneys for criminal
prosecution. Since the inception of the unit, it has investigated more than 1,578 alleged
fraudulent or abusive acts.
In the 2004 fiscal year, 304 cases were initiated. Twenty-six cases were referred for civil action.
Collection for fines and assessments totaled $80,595.05 for fiscal year 2004.
The objectives of the unit are to: assure that the injured worker receives timely required medical
treatment and benefits; protect the employer, carrier and medical provider from fraudulent acts;
assure that the businesses within the state are compliant by maintaining worker compensation
insurance coverage; and assure that the division receives required documents in a timely manner.
Referrals
Information Received by the Unit
The Fraud and Abuse unit receives information on alleged fraud and other violations of the
workers compensation laws by phone, fax, e-mail (including through our web site), regular mail
or submissions from one of the other sections of the Division of Workers Compensation.
Allegations of fraud and abuse are designated as a referral. This referral is reviewed by the
Assistant Attorney General to determine if sufficient information is evident to warrant an
investigation. If there is sufficient information, the case is assigned to a Special Investigator. If
insufficient information exists, the matter is returned to the complaining party for further
information or, if that is not possible, the referral is recorded but no investigation commences.
Types of Fraud
The unit classifies the type of fraud reported as it relates to the fraud and abuse statues as well as
the compliance statutes. Table 4-1 lists the types of fraud, abuse and compliance cases reported
to the unit over the past year.
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Table 4-1
Number of Fraud, Abuse and Compliance Cases Reported
Type of Fraud, Abuse and Compliance Referrals Total
Obtaining or denying benefits by making false statements either 56
orally or written: K.S.A. 44-5,120 (d)(4)
Failing to confirm benefits to anyone providing treatment to a 9
claimant: K.S.A. 44-5 120(d)(15)
Failing to initiate or reinstate compensation when due: K.S.A.44- 2
5,120 (d)(16)
Refusing to pay compensation as and when due: K.S.A. 44-5,120 1
(d)(18)
Refusing to pay any order awarding compensation: K.S.A. 44- 6
5,120 (d)(19)
Failing to timely file accident reports: K.S.A. 44-557 83
Receiving TTD or PTD benefits while working: K.S.A. 44-5,125 12
(a)(1)(D)
Failing to maintain workers compensation insurance when 109
required: K.S.A. 44-532 (d)
All other fraudulent and abusive practices 26
Source: Kansas Division of Workers Compensation
Investigations
The Fraud and Abuse unit has three full-time investigators. These investigators are not law
enforcement officers. However, they perform investigative duties almost identical to those
performed by sworn law enforcement. The investigation process includes activities such as
interviewing witnesses, collecting evidence, forming liaisons with law enforcement groups, as
well as special fraud investigation units within the insurance industry, and testifying in
administrative and criminal actions.
Once an investigation is complete, the investigator will prepare a summary for the Assistant
Attorney General to review. Criminal or administrative action commences if the Assistant
Attorney General determines that there is sufficient information to sustain the burden of proof in
either a criminal or administrative action.
If the information indicates an insurance company as the alleged fraud violator, that information
is referred to the Kansas Insurance Department, which has the authority to bring fraud and/or
abusive practice actions against insurance companies.
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Prosecution
The unit is authorized to initiate criminal or administrative action against individuals and entities
that appear to have committed fraud or abuse of the workers compensation system. The unit has
been extremely aggressive in this area. Civil actions are divided into compliance and fraud
actions in the table below.
Table 4-2
Number of Cases
Compliance 18
Fraud/Abuse 8
Criminal 0
Total 26
Collections
During either a criminal or administrative action, a penalty, fine or restitution is requested, but
not necessarily ordered, by the judge or hearing officer. The total amount collected for FY 2004
was $80,595.05. The unit makes every attempt to collect the fund owed without any assistance.
However, in some instances the Legal Services division of the Kansas Department of Labor is
used to file a collection action. Once the money is received, by law it must be deposited in the
appropriate fund.
Table 4-3
Fraud, Abuse, and Compliance Collections
Fraud and Abuse Fines: K.S.A. 44-5,120 & 44- $11,290.46
557
Compliance Fines: K.S.A. 44-532 $68,844.59
Restitution $ 460.00
Total $80,595.05
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Kansas Division of Workers Compensation Annual Statistical Report 2004
Conclusion
The Division of Workers Compensation Fraud and Abuse unit is and will continue aggressively
investigating and prosecuting workers compensation violators. If you wish to report an employer
failing to comply with the Workers Compensation Act, engaging in an act of fraud, or if you just
have questions for the unit, please do not hesitate to contact the division.
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Appendix A
Technical Notes:
Occupational Injury and Illness
Incidence Rates
and
Closed Claims Study
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Kansas Division of Workers Compensation Annual Statistical Report 2003
Kansas Occupational Injury and Illness Incidence Rates: The division collects data on the
entire population of workplace injuries and illnesses in the state of Kansas through its first report
of injury form, and stores it in its relational database. Every employer covered under the Workers
Compensation Act that has workplace injuries must submit first reports of injury. The severity of
each occupational accident or illness and the industrial classification code are mandatory data
elements that must be reported by employers to the state. The severity of each accident or illness
is exhibited by the numerical code representing the following severity categories: 0-No time lost,
1-Time lost and 2- Fatality. The division’s analysts utilized the BLS statistical formula (see
above) to calculate the incidence of injury for each severity classification for Kansas’s non-
federal employment hours for the past ten fiscal years. Data used in the calculation of incidence
rates was obtained from the Kansas Labor Market Information Services and division databases.
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Sample Design: The division consulted with a professor of statistics from Washburn University
in order to achieve both efficiency and effectiveness in the CCS Study. Rather than collecting
data from the entire population of claims for a calendar year, which would be impractical (as it
would result in very large data sets), extremely expensive and labor intensive, the division’s
researchers randomly sample from the population and make valid inferences about its
characteristics using reliable and credible statistical techniques.
Typically, it is preferable to use simple random sampling in a study of this nature. The goal of
simple random sampling designs is to ensure that each element in the population has an equal
chance of being selected for the study. However, this type of one-stage sampling of carriers is
not an appropriate option for the CCS study because the division must have a sample that is
sufficiently large and accurately representative of the population in order to perform relevant
statistical inference in this way. The sample must also preserve the power of equal probability
associated with simple random sampling for statistical purposes. This enables the researchers to
process the statistics without having to weight any of the data, thus making the calculations
simpler and easier for the public to understand. The paid loss claims are not evenly distributed
within the carrier population. The carriers with higher paid losses tend to have a higher
proportion of paid loss claims. Therefore, the division needed to sample a larger percentage of
these carriers in order to ensure that the sample was representative of the total population. In
order to accommodate this situation, the division utilizes a two-stage type of probability
sampling procedure known as “disproportionate stratified sampling.” Unlike a simple random
design, the stratified sample design ensures that different groups within the population will be
adequately represented in the sample, thus increasing the accuracy of the parameter estimations.
The general strategy employed is to first create strata (subsets of the total population) that are
more homogeneous than the population as a whole, and then to sample a different fraction of
each stratum population. Then, when combined, the resulting sample will be reasonably
representative of the more heterogeneous total population. Furthermore, each carrier is required
to sample claims from their database using simple random sampling techniques. This resulting
sample will preserve the principle of simple random selection as each carrier of the sample is
randomly selected from within each stratum.
The study team estimated that in order to obtain a statistically significant sample, it would be
sufficient to sample approximately 35-40 insurance carriers, pools and self-insured
organizations. The sampling method is as follows: The population was first stratified according
to paid losses. The specific variable used to stratify this population was a percent of total paid
losses for all workers compensation claims in the state of Kansas. Subsequent to stratification,
the division selected carriers from each stratum by utilizing a random number generator. All
carriers in any particular stratum had the same chances of being selected as any other carrier in
the same stratum. The selected carriers were then asked to randomly select claims from their own
databases that met the CCS study criteria. In consultation with the division’s statistician, the
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division stratified the population as follows: stratum 1 contains all members of the population
with greater than or equal to two percent of the total paid losses; stratum 2 contains all members
of the population with greater than or equal to one percent (but less than two percent) of the total
paid losses; stratum 3 contains all members of the population with greater than or equal to 0.5
percent (but less than one percent) of total paid losses; stratum 4 contains those members with
greater than or equal to 0.25 percent (but less than 0.5 percent) of total paid losses; and stratum 5
contains members with greater than or equal to 0.1 percent (but less than 0.25 percent) of total
paid losses. As discussed above, carriers from the strata needed to be sampled disproportionately
in order to maintain the principle of simple random sampling. After running a sampling
procedure and modifying sampling numbers, final sampling percentages were established for the
various strata. One hundred percent of the elements of stratum 1 were selected, 53.8 percent of
the elements of stratum 2 were selected, 34 percent of the elements of stratum 3 were selected,
12.9 percent of the elements of stratum 4 were selected, and 11.5 percent of the elements of
stratum 5 were selected. This resulted in a total sample of 38 elements from the total population,
which satisfies the requirement of 35-40 elements necessary for a statistically significant sample
in this case. On occasion, if the situation arises, the director of the division may need to enlarge
the study or substitute carriers for political, administrative or financial reasons. In order to
accommodate the possibility of this occurrence, the division created a backup list of carriers by
first removing the initially selected carriers from the original database and sampling from the
resulting list.
Data Collection: The organizations included in the study were then asked by the division to
randomly sample from their databases approximately 200 (or less, if they did not have 200)
claims for the specified calendar year. The sample was to be taken from each entity’s pool of
claims, including both medical and indemnity payments. Each claim in the sample also was
required to have been open at least one day during the period of January 1, 2003, to December
31, 2003. The expected sample size of both the open and closed claims was approximately 3,765
random claims.
The division secured permission from the National Council on Compensation Insurance to print
and use the Detailed Claim Information (DCI) survey instrument in order to create data
definitions and structure for the Kansas Closed Claims Study survey. DCI is a national standard
for reporting comprehensive claim data from insurance carriers. Adhering to the DCI structure,
programmers in the Kansas Department of Labor created two software packages to assist
reporting entities. One package was a manual entry system; the other application allowed a text
file to be imported electronically. Both products included editing limitations on inputs to certain
data fields. In addition, the division’s analysts performed data scrubbing on the data sets to
ensure that accurate aggregate statistics were reported to the legislature.
To assist reporting organizations in understanding data requirements and use of the new
software, the division offered assistance upon request. Following distribution of both software
products, reporting entities were asked to provide data by May 31, 2004, on the complete history
of their sample of claims. In addition, the division asked that information on charges paid for
certain types of services were reported quarterly for claims remaining open within the sample
group.
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Response Rate: Non-response bias is always a threat to the accuracy of a sample because non-
respondents may differ significantly from survey respondents. Typically, in any study such as
this one, certain organizations do not respond due to various circumstances, including, but not
limited to, bankruptcy, refusal to answer or lost forms. In order to assess whether the CCS
sample suffered from non-response bias, the division calculated an estimated response rate for
the study. In order to do this, the division first assumed that claims reported by the carriers who
had less than the required 200 were, in fact, all of their claims for the year 2003. For the purposes
of calculating the non-response rate, the total number of claims not reported was estimated by
comparing the number of submitted claims from carriers in the study within the same stratum.
Specifically, the statistical mean of the number of claims received per carrier in each stratum was
used to estimate the number of claims expected from each non-respondent in the same stratum.
This estimation is known as the “mean imputation.” The total number of claim records that the
division received was 2,708 out of an estimated 2,860 sampling units. The division used the
following standard formula to calculate the response rate, R: R=1-[(n-r)/n], where n = sample
size, and r = number of actual responses. The division’s analysts calculated a response rate of
approximately 97.12 percent for this study, and thus a corresponding non-response rate of
approximately 2.88 percent. The division, in consultation with its statistician, concluded that the
sample did not suffer from systematic non-response bias.
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